FHFA Reaches Milestone in ‘Single Security’ Implementation Effort

The Federal Housing Finance Agency has successfully implemented Release 1 of its Common Securitization Platform, the agency announced today. With this release, Freddie Mac is now using the common securitization platform to issue its current securities, a significant milestone toward FHFA’s goal of issuing a common, single mortgage-backed security to be issued by both housing GSEs. The Single Security will have key features of Fannie Mae’s current MBS and disclosures resembling those of Freddie’s bonds and will finance fixed-rate loans now eligible for financing through the TBA market.

The agency will now focus on Release 2, which will allow Fannie and Freddie to issue their own securities, as well as Single Securities. FHFA is expected to announce its implementation timeline for Release 2 in the first quarter of 2017.

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