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The Federal Housing Finance Agency last week said the first part of its Common Securitization Platform was successfully implemented in November. NAFCU has previously lodged concerns about this platform possibly making it more difficult for credit unions to sell their loans to Fannie Mae and Freddie Mac.

The FHFA said the success of its initial implementation, on Nov. 21, demonstrates that the system, operations and controls of the CSP and Common Securitization Solutions, a limited-liability company created by Fannie Mae and Freddie Mac, are functional. Freddie Mac is now using the CSP software for data acceptance, issuance support and bond administration activities related to current single-class, fixed-rate, mortgage-back securities.

The government-sponsored enterprises and the CSS expect to announce the timeframe for the next implementation sometime in the first quarter of 2017, the FHFA said. This second phase would involve the issuance by the GSEs of a common, single mortgage-backed security, to be called the Uniform Mortgage-Backed Security.

In September, NAFCU told the FHFA its concerns about the CSP and urged the agency to provide safeguards for existing GSE securities held by credit unions so they do not lose their marketability after the introduction of a single security.

Treasury Secretary nominee Steven Mnuchin and leaders on Capitol Hill have indicated that GSE reform will be a priority next year. NAFCU continues to advocate for housing reform that guarantees access for credit unions to the secondary mortgage market, and fair prices based on loan quality rather than volume.