Posted To: MBS Commentary
For the purposes of following along with the underlying forces affecting mortgage rates, Freddie Mac MBS essentially never mattered. Fannie had always been the big show, and that message was driven home with the implementation of the Single Security Initiative (SSI). Haven't heard of the SSI? Don't sweat it. If you haven't heard about it, that means it's completely inconsequential for you. It only matters on the secondary mortgage market and even then, it doesn't have a significant bearing on mortgage rate momentum, intraday reprice risk, etc. For all intents and purposes, it's a housekeeping change. So What Is It? How much detail do you want? Short version: Fannie and Freddie still exist separately, but they've aligned their standards just enough to issue the same…(read more)
Source: Mortgage News Daily
