Despite the fact that the Housing Finance Regulatory Improvement Act had been talked about for weeks in the mortgage market and covered endlessly in MBSL and elsewhere, it took a speech from Gary Gensler, undersecretary of the Treasury for domestic finance, to finally bring it uncomfortably close to mortgage players' reality (see story p. 1).

"If the bill passes in its entirety, Fannie Mae.and Freddie Mac debentures could trade as triple-A corporates, which is notably wider than they have been trading," said Art Frank, head MBS researcher at Nomura Securities. "But before I even speculate on that, it would be a huge event in the mortgage market if that happened, and it would enormously change the market.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.