Following the successful implementation of the first phase of a common mortgage-backed security, the government-sponsored enterprises are moving on to phase 2.
Back in December,
McLean, Virginia-based Freddie Mac implemented the common securitization platform on some of its single-family fixed-rate MBS.
The move, which was dubbed Release 1,
paved the way for the implementation of a combined to-be-announced MBS for Freddie and cousin Fannie Mae.
The GSE’s to-be-announced MBS market
stands at $3.5 trillion.
On Thursday, the pair of secondary mortgage lenders’ regulator and conservator, the Federal Housing Finance Agency, announced the implementation of Release 2.
The time frame for Release 2 is
planned for the second quarter of 2019.
The latest release will allow Fannie and Freddie to
to use the CSP to issue a single, common security to be called the uniform mortgage-backed security, or UMBS.
“The CSP and single security are ambitious projects,” FHFA Director Melvin L. Watt stated in the announcement. “I am very pleased with the hard work and determination of all those involved who helped make Release 1 a success and laid the foundation for successful implementation of Release 2.”
Watt added that he is
grateful for the support and input provided by the public and industry participants.
