Fannie Mae and Freddie Mac, which are currently in conservatorship of the Federal Housing Finance Agency, recently filed paperwork to combine their securitization platforms through the creation of Common Securitization Solutions LLC.
Common Securitization will be an equally-owned subsidiary of Fannie and Freddie. The filing comes several months after FHFA Director Edward DeMarco announced the move and plans for a new securitization platform.
“The filing of the Certificate of Formation represents a significant milestone toward accomplishing the goal of building a new secondary mortgage market infrastructure,” DeMarco said. “We are pleased with the progress being made and look forward to further developments.”
Officials from Fannie and Freddie said the CSS will be located in Bethesda, Md., for a three-year lease term. The FHFA has also retained an executive recruitment firm to help identify potential candidates for the CEO and board chairman positions for CSS. The recruitment firm is currently in the process of interviewing candidates for the positions.
On Monday, the FHFA said Fannie—under the Federal National Mortgage Association—and Freddie—under the Federal Home Loan Mortage Corp.—have completed nearly three million foreclosure prevention actions since entering conservatorship in 2008. The effort is expected to have helped approximately 2.4 million borrowers keep their homes, Value Walk reports.