The ""Federal Housing Finance Agency"":http://www.fhfa.gov (FHFA) touted progress made toward building a new common securitization platform between the GSEs, saying the joint venture ""reached some important milestones"" Monday.
[IMAGE]A Certificate of Formation was filed with the Secretary of State of the State of Delaware, establishing Common Securitization Solutions, LLC, (CSS) as a limited liability company. This authenticates CSS as a legally recognized entity and marks an important step in creating the joint venture, which is an equally-owned subsidiary of ""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com, FHFA explained.
""The filing of the Certificate of Formation represents a significant milestone toward ... the goal of building a new secondary mortgage market infrastructure,"" said Edward
[COLUMN_BREAK]J. DeMarco, FHFA acting director. DeMarco added that he is ""pleased with the progress being made.""
Part of that progress includes new office space to house the jointly created entity. FHFA says a three-year lease for commercial office space to house CSS has been signed by authorized officials from both Fannie Mae and Freddie Mac. The office space is located in Bethesda, Maryland, and was secured following what FHFA describes as a ""rigorous process.""
In addition, an executive recruitment firm has been retained to identify candidates for the CEO and chairman of the board of managers of CSS, and interviews are already underway.
DeMarco announced back in March that one of his 2013 goals was the formation of a new joint business entity, to be located separately from Fannie Mae and Freddie Mac and headed by a CEO and Chairman of the Board of Managers. ""Today's announcement shows clear progress toward meeting those goals,"" according to a statement from the FHFA office.
""We are pleased that Common Securitization Solutions, LLC, has been established and that office space for this new joint venture has been secured,"" said Terry Edwards, Fannie Mae's EVP and COO. ""These are important steps toward building a more sustainable housing finance system with increased private capital participation and decreased taxpayer risk.""