FHFA Releases Resources for GSEs’ Single Security, Securitization Platform Implementation

The Federal Housing Finance Agency today issued an update to “plan and prepare” for the forthcoming implementation of the Common Securitization Platform and Single Security Initiative, part of FHFA’s 2018-22 strategic plan for its oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks that takes effect in 2019. Included in the update were materials to help plan and prepare implementation, such as the Market Adoption Playbook, an educational video and an implementation schedule.

CSP’s Release 1 was initiated in December 2016 and allowed Freddie Mac to use the platform to issue its current securities. Release 2 is currently scheduled for the second quarter of 2019, and will allow both GSEs to issue their own securities, as well as Single Securities. The FHFA urged participants to be prepared for SSI implementation by the end of 2018. To that end, the agency also outlined how it plans to support cash flows to investors from GSE mortgage-backed securities, as well as the potential effects of changes to programs, policies or practices.

The agency last released a progress report in March, listing building a CSP as one of the agency’s goals for the GSEs, in addition to maintaining access to credit, helping prevent foreclosures and reducing credit risk. The FHFA is accepting public comments on the most recent update.