The New Mortgage Securitization Platform Gets Real

The new securitization platform envisioned in the FederalrnHousing Finance Agency’s (FHFA) StrategicrnPlan for Freddie Mac and Fannie Mae has taken several steps towardrnreality.  FHFA announced late Monday thatrnCommon Securitization Solutions (CSS), LLC had received a Certificate ofrnFormation from Delaware’s Secretary of State. rnThe new limited liability company will be jointly owned by the tworngovernment sponsored enterprises (GSEs) currently in conservatorship with FHFA,rnand will assume their securitization functions.</p

“The filing of the Certificate of Formation represents arnsignificant milestone toward accomplishing the goal of building a new secondaryrnmortgage market infrastructure,” FHFA’s Acting Director Edward J. DeMarcornsaid.  “We are pleased with the progressrnbeing made and look forward to further developments.”</p

The new company also has a likely new home.  FHFA said that authorized officials from bothrnFannie Mae and Freddie Mac had signed a three-year lease for office space inrnBethesda, Maryland. </p

In a further indication that the new common platform mayrnsoon be up and running, the GSEs have employed an executive recruitment firmrnwhich has already begun identifying and interviewing candidates for key positionsrnat CSS.  These include a chief executivernofficer and Chairman of the Board of Managers.

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