Fannie, Freddie moving toward combined platform
Oct. 9, 2013 – Government-sponsored enterprises Fannie Mae and Freddie Mac – currently under the conservatorship of the Federal Housing Finance Agency – have filed paperwork to combine their securitization platforms into one unit.
According to the FHFA, the GSEs will create a limited liability company called Common Securitization Solutions LLC, which will be an equally-owned subsidiary of Fannie and Freddie.
FHFA Director Edward DeMarco officially announced plans for the move in March. DeMarco also discussed the plans for a new securitization platform at the 2012 NAFCU Congressional Caucus.
After DeMarco’s comments at Caucus and an FHFA white paper on the subject, NAFCU Senior Vice President of Government Affairs Carrie Hunt wrote the FHFA to advocate that any housing reform effort ensure credit unions guaranteed, equitable access to the secondary market. In her letter, Hunt strongly supported an important role for mortgage-backed securities with a government guarantee. The guarantee should support single- and multi-family mortgages that the GSEs have historically supported, Hunt said.
The certificate of formation announced this week was filed with the Secretary of State of Delaware. The joint organization will be based in Bethesda, Md.
Hunt presses FHFA on guarantee