WASHINGTON, June 23, 2024 – The Structured Finance Association (SFA), a leading trade association representing the structured finance and securitization industry, released the following statement in response to the Federal Housing Finance Agency (FHFA) approving a proposal by the Federal Home Loan Mortgage Corporation (Freddie Mac) to begin purchasing second mortgages.
SFA members view Freddie Mac’s plan as unnecessary government encroachment into a market that has been operating effectively without government involvement. Members also believe the proposal – which involves single-family, closed-end second mortgages – falls outside the mission of government sponsored enterprises (GSEs) like Freddie Mac.
“SFA believes the more prudent course of action would be to disallow the GSEs from purchasing closed-end second mortgages. That said, we appreciate the FHFA limiting the scale and scope of the program, with many of the newly announced limits coming directly from SFA members. SFA looks forward to our continued engagement with the FHFA and other policymakers on this issue,” said SFA CEO Michael Bright.
About the Structured Finance Association:
With more than 370 member institutions comprised of accounting firms, broker/dealers, diversified financial intermediaries, investors, issuers, IT vendors, law firms, mortgage insurers, other small financial institutions, rating agencies, servicers, and trustees, SFA is the leading voice for the securitization industry.
SFA is focused on helping grow the real economy and improving the lives of individuals, families, businesses, and communities across the nation; helping make credit more affordable and available to people who need it to finance some of life’s biggest goals — education, car purchases, starting a business, buying a home — or reduce their debt through consolidation loans; safeguarding essential protections for consumers and the financial system; facilitating valuable dialogue among the financial services market, its practitioners, policymakers and the broader public; and recognizing that all finance entails risk, but it should not involve recklessness.
For inquiries, please contact Walt Cronkite, Director of Communications at the Structured Finance Association. Walt.Cronkite@StructuredFinance.org
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