Washington, D.C. – The Federal Housing Finance Agency (FHFA) today published An Update on Implementation of the Single Security and the Common Securitization Platform. The Update includes the timeframe for Release 2 of the Common Securitization Platform (CSP), planned for the second quarter of 2019. Release 2 will allow Fannie Mae and Freddie Mac (the Enterprises) to use the CSP to issue a single, common security to be called the Uniform Mortgage-Backed Security or UMBS.
The Update also details the successful implementation of Release 1 by Freddie Mac and Common Securitization Solutions (CSS), a joint venture owned by the Enterprises, in November 2016. With Release 1, Freddie Mac is now using the Data Acceptance, Issuance Support, and Bond Administration modules of the CSP for activities related to its current single-class, fixed-rate securities Participation Certificates (PCs) and Giant PCs. With Release 2, both Enterprises will use the modules and issue UMBS.
“The CSP and Single Security are ambitious projects,” said FHFA Director Melvin L. Watt. “I am very pleased with the hard work and determination of all those involved who helped make Release 1 a success and laid the foundation for successful implementation of Release 2. I am also grateful for the support and input we have received from the public and from industry participants. I encourage all market participants to begin moving forward with their preparations to make the changes they will need to accompany implementation of the Single Security Initiative,” Watt said.
The Update also describes other milestones reached, costs related to the CSP and specific steps being taken to ensure alignment between the Enterprises, which is central to the success of the Single Security and to enhancing the liquidity of the secondary mortgage market on an ongoing basis.
FHFA continues to update the timeline (hyperlink) of key achievements on this project as milestones are reached.
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, DC 20219. All pertinent submissions received will be made public and posted without redaction to FHFA’s website.