Is the UMDP a signal that FHFA expects or supports combining the GSEs into a single entity?
FHFA directed the GSEs to develop a common approach to capturing loan data to strengthen and maintain the GSEs as viable ongoing business entities, in accordance with its mandate as the GSEs’ regulator. A common approach enables both GSEs to better capture consistent and accurate data for the loans that are submitted for purchase and/or securitization. Once collected, this data will drive the GSEs’ individual analysis, eligibility requirements, credit and pricing policies, and other business terms. The GSEs have worked together for a number of years on non-policy business requirements, such as through development and maintenance of uniform mortgage forms and security instruments. The GSEs are congressionally chartered, and thus any decision to change their role and/or structure rests with Congress.
