Search Results for keywords:"mortgage-backed securities"

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Search Results: keywords:"mortgage-backed securities"

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  • 2021-02996 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Modify the Calculation of the MBSD VaR Floor To Incorporate a Minimum Margin Amount
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    Type:Notice
    Citation:86 FR 9560
    Reading Time:about 14 minutes

    The Securities and Exchange Commission (SEC) is reviewing a proposed rule change by the Fixed Income Clearing Corporation (FICC) regarding the calculation of the "Minimum Margin Amount" for its Mortgage-Backed Securities Division (MBSD). This new calculation aims to ensure adequate collection of margin from members, especially during times of market volatility, by adjusting based on historical price movements. The SEC is seeking comments from the public to help decide whether to approve or disapprove the proposed rule change. The proceedings are being held to consider the legal and policy implications of the change and its alignment with existing financial regulations.

    Simple Explanation

    The SEC is thinking about whether to say yes or no to a new idea for how much money financial companies need to keep safe, especially when prices change a lot. They want people to share their thoughts to figure out if it's a good plan.

  • 2024-29390 — Disbursing Multifamily Mortgage Proceeds: Permitting Mortgagees To Disburse Mortgage Proceeds With Mortgagor-Provided Funds
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    Type:Rule
    Citation:89 FR 100739
    Reading Time:about 20 minutes

    The Department of Housing and Urban Development (HUD) has issued a final rule that permits mortgage companies to disburse up to 1% of a mortgage amount before using all of the funds provided by the borrower. This rule is meant to simplify the process of combining mortgages into mortgage-backed securities and help ensure interest rates for FHA-insured mortgages remain competitive. Public comments suggested more flexibility in disbursement limits, but HUD maintained the 1% limit to manage risks effectively. This final rule also makes minor organizational changes to existing regulations.

    Simple Explanation

    HUD, a government agency, made a new rule letting banks give out 1% of a house loan before spending all the money the borrower put in. This change is to make things smoother for putting these loans in bundles, sort of like bagging marbles together, so they can be shared with others, helping to keep costs fair for everyone.