Senate Panel Examines Fundamentals of PLS Market
The Senate Banking Committee has scheduled a hearing that will delve into the fundamentals of the private-label MBS market.
Committee members are working on a housing finance reform bill that that will depend on private MBS issuers replacing Fannie Mae and Freddie Mac.
The reform bill authored by Sens. Bob Corker, R-Tenn., and Mark Warner, D-Va., requires credit enhancers to put 10% capital behind every newly issued MBS. Many consider the 10% levy too high and unnecessary.
Martin Hughes, the chief executive and director of Redwood Trust, is slated to testify at the Oct. 1. hearing.
Redwood Trust has completed 10 private-label MBS deals this year.