A year after unveiling plans for a private infrastructure that can handle the nation’s secondary mortgage market, the regulator of Fannie Mae and Freddie Mac is reporting the achievement of significant milestones.
In October 2012, the Federal Housing Finance Agency proposed a new securitization platform and a model for a contractual and disclosure framework.
The FHFA’s proposed private-label securitization platform was expected to be fully capable of eventually replacing Fannie and Freddie.
On Monday, the regulator disclosed that a certificate of formation was filed with the Delaware Secretary of State establishing Common Securitization Solutions LLC as a limited liability company.
The new legal entity is equally owned by Fannie and Freddie and its formation “marks an important step in creating the joint venture,” the regulator said.
In addition, a lease has been signed for space in Bethesda, Md., that will house the business.
FHFA said that an executive recruiter has been retained to identify candidates to serve as CSS’ chief executive officer and chairman of the board of managers.
Candidates are currently being identified and interviewed.
