WASHINGTON (9/17/15)--Progress continues on the development of a Common Securitization Platform (CSP) for Fannie Mae and Freddie Mac. An update on the Common Securitization Platform was released Wednesday by the Federal Housing Finance Agency (FHFA).
“This update details significant progress that has been made to date in building and testing the CSP, and toward launching a single security,” FHFA Director Mel Watt said in a statement. “Together, these projects will bring us much closer to the goal of improving the overall liquidity of the mortgage market. They will also reduce costs for Fannie Mae and Freddie Mac and taxpayers.”
The FHFA proposed a single mortgage backed security in August 2014, and created a company, Common Securitization Solutions, LLC (CSS), to operate the new platform in November 2014. Development of the CSP was a key goal in the FHFA’s strategic plan for Fannie and Freddie.
The update includes details on the organizational structure of CSS and the modules that comprise the CSP, as well as their functions. It also looks ahead to an anticipated announcement in 2016 of an implementation date for Release 1, the initial use of the CSP by Freddie Mac, followed by Release 2 that will enable both Freddie Mac and Fannie Mae to use the CSP to issue single securities.
The update also describes ongoing efforts to seek input from industry stakeholders, including formation of a single security/CSP Industry advisory group.
The FHFA is accepting comments on the update, electronically, or by mail to its Office of Strategic Initiatives.