FHFA Issues Update on Common Securitization Platform

The Federal Housing Finance Agency today issued an update on the common securitization platform it is developing to issue the Single Security, a mortgage-backed security to be issued by both Fannie Mae and Freddie Mac. Included in the update is a timeline of key achievements to date, as well as upcoming milestones and targeted completion dates for the two planned platform software releases.

Release 1, which will allow Freddie Mac to use the common securitization platform to issue its current securities, will undergo testing over the next several months, with implementation scheduled for the end of 2016. The second release, which FHFA expects to develop over the next two years and implement in 2018, will allow both GSEs to issue their own securities, as well as Single Securities. The Single Security will have key features of Fannie’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.