The new securitization platform envisioned in the Federal
Housing Finance Agency's (FHFA) Strategic
Plan for Freddie Mac and Fannie Mae has taken several steps toward
reality. FHFA announced late Monday that
Common Securitization Solutions (CSS), LLC had received a Certificate of
Formation from Delaware's Secretary of State.
The new limited liability company will be jointly owned by the two
government sponsored enterprises (GSEs) currently in conservatorship with FHFA,
and will assume their securitization functions.
"The filing of the Certificate of Formation represents a
significant milestone toward accomplishing the goal of building a new secondary
mortgage market infrastructure," FHFA's Acting Director Edward J. DeMarco
said. "We are pleased with the progress
being made and look forward to further developments."
The new company also has a likely new home. FHFA said that authorized officials from both
Fannie Mae and Freddie Mac had signed a three-year lease for office space in
In a further indication that the new common platform may
soon be up and running, the GSEs have employed an executive recruitment firm
which has already begun identifying and interviewing candidates for key positions
at CSS. These include a chief executive
officer and Chairman of the Board of Managers.