In November, Freddie Mac reached a “significant milestone” [1] toward the goal of a common securitization platform and a Single Security with the implementation of Release 1, the first use of Common Securitization Platform (CSP) software and the implementation of CSP’s core infrastructure and operations, according to FHFA Director Mel Watt.
Now the FHFA, conservator for both Freddie Mac and Fannie Mae, has outlined the next steps toward implementing the Single Security on the CSP—which it expects to do sometime in 2018—in the 2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions (CSS) [2].
“The 2017 Scorecard will guide Fannie Mae, Freddie Mac and Common Securitization Solutions as they continue to build on the progress that has been made over the years in meeting the goals set forth in our Conservatorship Strategic Plan,” said FHFA Director Melvin L. Watt. “The goals and initiatives contemplated in the Scorecard strike what we believe is an appropriate balance between ensuring that these entities operate in a safe and sound manner while continuing to ensure that the housing finance market remains liquid and supports housing access for homeowners and renters.”
FHFA noted in the scorecard that “The Common Securitization Platform and Single Security are significant, multiyear initiatives, and FHFA expects these inter-related projects to remain ongoing conservatorship priorities.”
The performance goals for 2017 for CSS and the GSEs are to continue working with FHFA each other build and test the CSP and then to successfully integrate the GSEs with the CSP. The ultimate goal is to implement the Single Security on the CSP for both Fannie Mae and Freddie Mac, according to the FHFA.
CSS and the GSEs, in developing the CSP, are charged with focusing on functions necessary for current GSE single-family securitization activities and including the development of operational and system capabilities CSP needs to facilitate the issuance and administration of a Single Security for the GSEs, according to the scorecard. Another goal for CSS and the GSEs for 2017 is to continue to work with each other “to obtain and utilize input from the Single Security/CSP Industry Advisory Group,” the scorecard reported.
With the launch of Release 1 in November, FHFA expects to FHFA expects to announce a timeframe for Release 2 in the first quarter of 2017. Watt stated, “FHFA has developed a timeline of key achievements to date and will update the timeline as milestones are reached. We remain committed to building the CSP in a transparent manner.”
Click here [3] to view the entire scorecard.