A proposal by the US Federal Housing Finance Agency (FHFA) should help to bolster the US mortgage market, if legislation is not passed to allow for US covered bonds. But the American Securitization Forum sees value in developing the product.
The Federal Deposit Insurance Corporation (FDIC) is uncomfortable, at present, with the idea of US banks selling securitizing mortgages to investors, with debt remaining on the balance sheets of insured banks. Covered bond holders are thought to have a preferential position ahead of other creditors.
Speaking...