On the Hill Episode 14: Michael Bright, Structured Finance Association

In this episode of On the Hill, Tim Rood, Head of Industry Relations, talks with Michael Bright, CEO of the Structured Finance Association, about the future of the non-agency, non-QM securitization market, and the private sector's role in augmenting the work of the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac.

“Originators have appetite to not be beholden to only three organizations to sell their mortgages,” Bright said. “They want to have partnerships, they want to be innovative in their secondary marketing structures, and they want to forge relationships with investors, who understand the way that they originate, do quality control and service mortgages.”

Rood and Bright also discuss the more expansive regulatory environment in Washington, D.C., and how that might ultimately hurt consumers. Government “can wade into into arenas where they’re misunderstanding some of the fundamental roles of the players involved… (and) you could run the risk of shutting down a market, which would be the exact opposite of the idea of allowing consumers to have safe and reliable access,” Bright noted.