NAREIT joined the Association of Mortgage Investors and the Securities Industry and Financial Markets Association in writing to the Federal Housing Finance Agency (FHFA) on Oct. 13 to provide comments on credit risk transfer within the mortgage finance system.
The organizations recommended a market-based approach towards regulating credit risk transfer.
“We believe it is most important that FHFA not ‘pick winners and losers’ in regards to specific forms of credit risk transfer,” the organizations wrote in their letter to the FHFA. “This market is still new and has a long road ahead before it could be considered mature.”
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