Freddie Mac will be the first of the government-sponsored entities to adopt the Common Securitization Platform (CSP), the Federal Housing Finance Agency (FHFA) announced.
In an update on the Common Securitization Platform, FHFA said that it expects an announcement next year of an implementation date for the first release of CSP by Freddie Mac, with both Freddie and Fannie using the CSP to issue single securities in a second release.
“Developing the CSP is a large scale, multi-faceted project,” FHFA Director Melvin L. Watt said in a press release. “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.”
The update details progress made in the development of a new infrastructure for the securitization of single-family mortgages by Fannie Mae and Freddie Mac. The development of CSP is a primary goal of the FHFA’s 2014 strategic plan for the conservatorships of Fannie Mae and Freddie Mac.
Building and testing the CSP is a 2015 Scorecard item for both companies and for Common Securitization Solutions, LLC (CSS), a joint venture company that was established by Fannie Mae and Freddie Mac to lead the work on this project.
The update also describes ongoing efforts to seek input from industry stakeholders, including formation of a Single Security/CSP Industry Advisory Group. For more, visit
http://www.fhfh.gov./AboutUs/Reports/ReportDocuments/CSP-Update-Final-9-15-2015.pdf