NAHB to Push for FHLBank Securitization

The National Association of Home Builders intends to keep pushing for changes that will allow the Federal Home Loan Bank System to securitize mortgages.It is unclear at this point whether FHLBank securitization language will be part of a final regulatory bill on housing government-sponsored enterprises. (A mark-up on GSE legislation is expected to start in May.) NAHB executive vice president Bill Kilmer told MortgageWire recently that if securitization powers are not passed in this session, the trade group intends to keep pushing the issue. It's possible that if such powers are not specified in legislation, a new GSE regulator might have the authority to grant them. Fannie Mae and Freddie Mac, historically, have been against giving the FHLBank system the right to securitize mortgages because it would increase competition.