April 20 The Mortgage Bankers Association on
Thursday released a report on proposed changes in a possible
reform of the secondary U.S. mortgage market including the role
of mortgage government-sponsored enterprises Fannie Mae
and Freddie Mac.
* U.S. mortgage industry group says it recommends a multiple
guarantor model with at least two entities, preferably more, in
a reform of secondary mortgage market.
* Reform should ensure a robust private mortgage market that
can exist parallel to a government-backed market.
* Rechartered successors to Fannie Mae, Freddie Mac will
likely be the first two guarantors.
* A U.S. regulator would be allowed to charter more mortgage
guarantors in bid to promote competition
* Mortgage guarantors would be monoline, regulated utilities
owned by private shareholders.
* A mortgage insurance fund with explicit government
guarantee should be created to back eligible mortgage-backed
Further company coverage:
(Reporting By Richard Leong)