Pension funds would have greater flexibility to invest in subordinated mortgage-backed securities and asset-backed securities under a long-awaited proposal issued Wednesday by the Department of Labor. The Bond Market Association, along with others, has been seeking a relaxation of the conflict-of-interest rules that currently inhibit pension fund managers' purchases of commercial MBS and ABS backed by residential mortgages and home equity loans. The proposed "underwriter exemptions" to the Employee Retirement Income Security Act would allow private employee benefit plans to purchase a broader range of MBS and ABS instruments, "significantly enhancing marketability and liquidity," TBMA said. The comment period runs for 45 days, but the effective date for the proposal (once it is finalized) is expected to be retroactive to Aug. 23.
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The 30-year fixed rate stayed within a narrow range throughout most of July, with forecasts likely to leave the housing market "stuck," said one economist.
9m ago -
New homebuyers found mortgages more affordable last month amid growing supply and softer prices nationwide, new data from the MBA finds.
26m ago -
Freddie Mac boosted its single-family provision because of modeled and observed declines in home prices and future appreciation during the second quarter.
2h ago -
While rising national home values leave close to half of owners on solid financial footing, growth in seriously underwater loans points to pockets of stress.
July 31 -
The regulator renewed his fight with the policymaker after the latter left the rates he oversees unchanged and distinguished them from those for mortgages.
July 30 -
One mortgage firm is out of business months after a cybersecurity incident, which compromised the personal information of over 30,000 of its former clients.
July 30