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81 » VISIT US ONLINE @ DSNEWS.COM GSEs PARTNER WITH INDUSTRY TO FORM ADVISORY GROUP FOR COMMON SECURITIZATION PLATFORM Freddie Mac, Fannie Mae, and Common Securitization Solutions, LLC (CSS) jointly an- nounced in July the development of an Industry Advisory Group. e group will provide feedback and share information on efforts to build the Common Securitization Platform (CSP) and implement the Single Security. According to the organizations, the Single Se- curity is a joint initiative of Freddie Mac and Fan- nie Mae, directed by the Federal Housing Finance Agency (FHFA), to develop a single mortgage- backed security that will be issued by the enter- prises to finance fixed-rate mortgage loans backed by one- to four-unit single-family properties. e CSP is a technology and operational platform being developed by CSS, the companies said. is new development is a new venture of both Freddie Mac and Fannie Mae. CSP will perform many of the core back office operations for the Single Security, as well as most of the enterprises' current securitization functions for single-family mortgages, on behalf of the enter- prises. e CSP is necessary for the implementa- tion of the Single Security. In May, the FHFA issued an update to mortgage-backed security (MBS) structure ini- tiative, also known as Single Security. e new changes to the Single Security structure initiative were based on 23 responses to a "Request for Public Input: Proposed Single Security Structure (RFI)" released in August 2014 by the FHFA. e Single Security initiative has not yet been ap- proved or enacted. "FHFA's Update should give everyone a sense of how the Single Security will be developed and the solid progress that has been made over the past year," said Dave Lowman, EVP of single- family business at Freddie Mac. "We strongly believe in the Single Security's potential for ex- panding liquidity in the TBA (to be announced) market, lowering housing finance costs, and mak- ing the housing finance system more competitive and resilient." e 2014 Conservatorship Strategic Plan for Fannie Mae and Freddie Mac consisted of creating a single MBS that the enterprises could provide finance fixed-rate mortgage loans backed by one to four single-family unit properties. Ac- cording to the FHFA, the initial goal was to assist in building a Common Securitization Platform (CSP) and support the statutory obligation to ensure the liquidity of the nation's housing finance markets issued by the FHFA. Taxpayers would also not have to suffer the cost of subsidizing Freddie Mac's securitization of single-family mortgage loans with the Single Security initiative. "Today's Single Security Update is an impor- tant milestone, providing additional details on the features of the Single Security and the strong progress made to date by Fannie Mae, Freddie Mac, and Common Securitization Solutions (CSS) on implementation planning," said Andrew Bon Salle, EVP of single-family business at Fan- nie Mae. "We will continue to work with FHFA, Freddie Mac, and CSS to ensure we transition to the Single Security in a safe and sound manner."

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