The Federal Housing Finance Agency (FHFA) has issued ‘An Update on the Common Securitization Platform,’ which describes the development of a new infrastructure for the securitization of single-family mortgages by Fannie Mae and Freddie Mac.
The FHFA says that the update details the organizational structure of the common securitization platform (CSP) as well as the modules within the CSP and their functions.
Further, the update discusses the anticipated 2016 announcement of an implementation date for Release 1, the initial use of the CSP by Freddie Mac, followed by Release 2, which will enable both Fannie and Freddie to use the CSP to issue single securities.
The update also mentions current efforts to seek input from industry stakeholders, specifically concerning the formation of a Single Security/CSP Industry Advisory Group.
‘This update details significant progress that has been made to date in building and testing the CSP and toward launching a single security. 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,’ says Melvin L. Watt, director of the FHFA.