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FHFA authorizes GSEs to support additional liquidity in the secondary mortgage market

March 24, 2020

On March 23, FHFA announced that is has authorized Fannie Mae and Freddie Mac to enter into additional dollar roll transactions, which provide MBS investors with short-term financing of their positions, to help support immediate needs for liquidity in the secondary mortgage market. Eligible collateral is limited to Agency MBS and the transactions must be undertaken via an auction or similar mechanism to ensure that they occur at a fair market price.