The Financial Industry Regulatory Authority’s latest plan to increase transparency in a corner of the $6.5 trillion mortgage-bond market is meeting resistance from Wall Street’s largest lobbying group.
Freddie Mac may seek credit ratings in the next offering of the firm’s new securities sharing its mortgage-default risks with investors, as it learns from the first issue and plans for another later this year.
Shellpoint Partners LLC, the housing lender backed by mortgage-bond pioneer Lewis Ranieri, sold its first securities tied to home loans without government backing after restructuring the debt to lure investors.
The market for mortgage securities backed by the U.S. government is the smallest in three years, bolstering the value of the debt and potentially expanding the effects of any new buying by the Federal Reserve.
Crude oil fell for a second day after China’s economic growth eased and the Federal Reserve said the U.S. outlook has “softened,” adding to concern fuel demand will slow in the world’s two biggest energy consumers.