MBA Calls for Industry Panel to Oversee New MBS Platform

The Mortgage Bankers Association is calling on the GSE regulator to create a “strong panel” of industry representatives to guide the development of a new securities platform for issuing Fannie Mae and Freddie Mac MBS.

“We believe that this panel should be created before any other further development is undertaken,” according to MBA chairman Debra Still.

The Federal Housing Finance Agency has made it a priority to develop a single platform as opposed to upgrading the individual platforms that Fannie and Freddie currently use. Eventually this platform could be used for privately issued MBS.

In a new white paper, MBA contends the platform should ultimately be owned by the industry as a cooperative.

But up till now, the development of this platform has not provided a mechanism for stakeholders to participate in this process.

This platform will impact borrowers, lenders and the overall market. “For these reasons, it is critical to appoint an industry advisory panel with real authority over the platform’s early development,” the MBA white paper says.