In an effort to make housing more affordable through increased secondary-market competition, the Federal Housing Finance Agency (FHFA) announced the launch of its new Uniform Mortgage-Backed Security (UMBS) program, under which it will combine mortgage-backed securities held by Fannie Mae and Freddie Mac.
The FHFA hopes the move will add liquidity and eliminate pricing differences, spurring service- and efficiency-based competition between the government-sponsored enterprises (GSEs).
Find out more details about what the change might mean for the mortgage market.