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FHFA Authorizes the Enterprises to Support Additional Liquidity in the Secondary Mortgage Market

Published on March 23, 2020 by Federal Housing Finance Agency
FHFA Authorizes the Enterprises to Support Additional Liquidity in the Secondary Mortgage Market

Washington, D.C.– Today, to help support immediate needs for liquidity in the secondary mortgage market, the Federal Housing Finance Agency (FHFA) has authorized Fannie Mae and Freddie Mac (the Enterprises) to enter into additional dollar roll transactions (dollar roll transactions provide mortgage-backed securities investors with short-term financing of their positions, providing liquidity to these investors). Eligible collateral is limited to Agency mortgage-backed securities and the transactions must be undertaken via an auction or similar mechanism to ensure that they occur at a fair market price.

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