The Federal Housing Finance Agency (FHFA) recently announced that it has been making good progress on the implementation of the Government Sponsored Enterprises’ (GSE) single securitization platform, stating that both Fannie Mae and Freddie Mac could begin using the new platform as early as 2018.
To recap, this new platform is a joint initiative from the GSEs to develop a single mortgage-backed security that will be issued by both Fannie and Freddie to finance fixed-rate mortgage loans backed by one-to-four-unit single-family properties. Its implementation has been an incredibly complex process that has already taken several years, but the light is starting to appear at the end of the tunnel.
The single security will be issued via the Common Securitization Platform (CSP), which will perform many of the core back office operations for the single security as well as most of Fannie Mae and Freddie Mac’s current securitization functions for single-family mortgages.
The FHFA continues to anticipate a two-phase implementation rollout for the single security, with Freddie Mac being the first to use the new CSP. During the first phase, according to the FHFA, Freddie Mac will begin using the Data Acceptance, Issuance Support, and Bond Administration modules within the CSP.
During the second phase of the rollout, Fannie Mae will begin using the Data Acceptance, Issuance Support, and Bond Administration modules within the CSP. In addition, both GSEs will begin using the CSP’s Disclosure module during this second phase as well.
HousingWire reported that the first phase on the CSP’s implementation is currently on schedule to be completed by the 4th quarter of 2016, while the second and final phase is expected to be completed in 2018.
For the complete FHFA update regarding the GSEs’ new single securitization platform, click here.
HousingWire – housingwire.com