ICBA to FHFA: reconsider pooling requirements

ICBA called on the Federal Housing Finance Agency to rethink the Uniform Mortgage Backed Security pooling requirements it is considering. The FHFA is seeking input on whether requiring Fannie Mae and Freddie Mac to channel more of their loan purchases into large multi-lender pools would improve UMBS liquidity.

In a comment letter and a joint letter with industry groups, ICBA said changing the government-sponsored enterprises' pooling practices is premature and would fail to address the major challenge of the UMBS: maintaining alignment between the GSEs.