Fannie Mae and Freddie Mac regulator's goal of creating a single mortgage-backed security is achievable, analysts say, and the best way to go might be to make it look like Fannie Mae's MBS.
The Federal Housing Finance Agency said in March it will "develop and finalize a plan by December 31, 2012 for the design and build of a single securitization platform that can serve both Enterprises and a post-conservatorship market with multiple future issuers."
The regulator had said in its Strategic Plan sent to Congress in February that "a single platform would allow for a single mortgage-backed security," although achieving such a goal "will take time."Good news!!
Your humble blogger designed, developed and patented an information system that is capable of being the single mortgage-backed security platform.
Most importantly, it is designed to be flexible enough to easily support covered bonds, a Fannie Mae mortgage-backed security, a Freddie Mac mortgage-backed security, a private label mortgage-backed security and structures that haven't even been considered yet.
If there is a consensus among experts indeed, it is that it will take time.If they talked to this expert, they would have discovered it will not take very much time.
But they also believe it is an achievable target, although many questions remain unanswered, especially what will happen to the existing MBS.The database should include existing MBS.
Chris Killian, managing director of SIFMA Securitization Group, told MNI a single MBS can be achieved, "in time."
"It is a complicated process that must be carefully planned and executed, but we believe it should be achievable," he said.
A securitization platform will also take time and "The complexity and timing will depend on the ultimate scope of the project, which is not clear to the market at this point," Killian said.One thing the market can rest assured of is that if SIFMA is involved, the mortgage database will take far, far more time to complete than is necessary. We are talking years for something that can be done in months.