WASHINGTON (12/28/15)--Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS) will all be graded in 2016 by a scorecard released last week by the Federal Housing Finance Agency (FHFA).
CSS is a new secondary mortgage infrastructure created by Fannie and Freddie to operate a new platform to deal a single mortgage-backed security. The FHFA’s strategic plan for Fannie and Freddie is to develop the single security, which would be mutually interchangeable with legacy Fannie Mae and Freddie Mac mortgage-backed securities.
CSS was created in November 2014 to operate the Common Securitization Platform (CSP), which will serve as the seller of the single security. CSP is also intended to replace certain elements of the Fannie and Freddie proprietary systems for securitizing mortgages and performing associated back-office and administrative functions.
According to the scorecard, in 2016 CSS is expected to:
Fannie and Freddie are tasked with: