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FHFA Issues New Prepayment Monitoring Report

Provides Transparency as Market Participants Prepare for UMBS


Washington, D.C. – The Federal Housing Finance Agency (FHFA) today issued a Prepayment Monitoring Report with data through the first quarter of 2018.  The report provides transparency and insight to market participants about how FHFA monitors the prepayment rates of Fannie Mae and Freddie Mac (the Enterprises) "To-Be-Announced" (TBA)-eligible securities. 

FHFA is seeking general alignment on the prepayments as the Enterprises prepare for issuance of the new Uniform Mortgage-Backed Security (UMBS) in June 2019.  Consistency of prepayment rates is important to the success of UMBS and to the efficiency and liquidity of the secondary mortgage market.  UMBS to be issued by Fannie Mae and Freddie Mac are designed to be fungible –that is, mutually interchangeable -- in order to broaden and enhance the liquidity of the secondary market on an ongoing basis.  FHFA has taken a number of steps to promote consistency of prepayment rates through monthly monitoring and established guidelines for general alignment. 

The Prepayment Monitoring Report  will be issued quarterly.

Link to report



The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.1 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.

Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030
Consumers: Consumer Communications or (202) 649-3811

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