The Federal Housing Finance Agency (FHFA) recently released An Update on Implementation of the Single Security and the Common Securitization Platform. The Update details the progress made to date and describes the expected milestones that Fannie Mae and Freddie Mac (the Enterprises) and Common Securitization Solutions (CSS) expect to meet to achieve the stated goals for these projects. The 2016 Conservatorship Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions calls for the Enterprises and CSS to implement the first use of the Common Securitization Platform (CSP) software in 2016 (Release 1), and to begin using the CSP to issue Single Securities in 2018 (Release 2).
The Update describes the various phases of testing required for Release 1 and Release 2; announces the planned issuance of final Single Security features and disclosures to the market; and provides information on the ongoing alignment of Enterprise programs, policies and practices and the processes that will be followed to further support the Single Security initiative.
“This Update reflects our ongoing commitment to transparency. It also reflects the outstanding public and industry input and support we have already received and that we look forward to continuing to have as we move toward the goal of launching the CSP,” says FHFA Director Melvin L. Watt. “The CSP and the Single Security are ambitious projects that we are confident should improve the overall efficiency and liquidity of the mortgage market and result in tremendous savings to taxpayers.”
FHFA has also developed a timeline of key achievements to date as well as upcoming milestones with targeted completion dates. FHFA will update the timeline as milestones are reached. Later this year, the Agency expects to announce the intended launch date for the Single Security in order to provide stakeholders at least 12 months’ advance notice.
FHFA welcomes public input on this Update from interested parties. Feedback can be submitted electronically via FHFA.gov, or to the Federal Housing Finance Agency, Office of Strategic Initiatives, 400 7th Street, S.W., Washington, D.C. 20219. All submissions received will be made public and posted to FHFA’s website.
For more information, visit www.fhfa.gov.