What has largely been an inability to jumpstart new securitization outside of Fannie Mae and Freddie Mac has been a big source of frustration for the financial services industry, a Securities Industry and Financial Markets Association official told attendees at the group’s meeting Tuesday.
“But for the GSEs’ participation we’d have very little securitization taking place and this is a frustration,” president and CEO Tim Ryan told attendees. ”Some of it is in the detail, some of it is in the economics [and] some of it is in we basically have less investors than we had traditionally in 2007.”
Nevertheless, a relatively wide cross-section of the group’s stakeholders view securitization as “critically important to consumer finance,” said executive vice president Randy Snook.
“It’s also an important vehicle for financing of banks and how banks can diversify funding sources,” he added.
