The recent approval of changes to Germany's Mortgage Bank Act, combined with a federal net-present-value directive published by German officials in December, have improved pricing for pfandbriefe, according to an executive from the Berlin-based German Association of Mortgage Banks.Certain elements of the legislative moves have yet to go into effect, said Louis Hagen, general manager of the Association of German Mortgage Banks. The changes to the Mortgage Bank Act, for example, still have to be officially published, he told MortgageWire. But because "all the legislative work has been done," investors have already begun paying up for the covered bonds, and pfandbrief pricing in general has stabilized, Mr. Hagen said.

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