FSOC to Conduct Assessment of Secondary Mortgage Market

The Financial Stability Oversight Council announced today that it plans to undertake an activities-based review of the secondary mortgage market to assess both the risk that activities in the secondary mortgage market pose to the stability of the financial system and the efficacy of various risk mitigants.

Federal Housing Finance Agency Director Mark Calabria welcomed this action by FSOC, noting that “as demonstrated by the 2008 financial crisis and again by COVID-19, Fannie Mae and Freddie Mac must be well capitalized in order to support the mortgage market during a stressed environment.”