WASHINGTON—The Federal Housing Finance Agency has released an update on its progress implementing the single security and the common securitization platform (CSP).
NAFCU noted that it requested an update on the FHFA's progress during association President and CEO Dan Berger's meeting with Director Mel Watt earlier this month.
The agency announced it would implement the second part of the CSP and the introduction of the single security in the second quarter of 2019 – this is a delay from the previously expected 2018 timeline, in part because of lessons learned from the first part of CSP implementation in November 2016, noted NAFCU.
The agency has also established an internal Single Security Governance Committee to monitor the issuance and prepayment performance of Fannie and Freddie's mortgage-backed securities.
The FHFA projects the additional CSP-related costs at $616.3 million between 2017 and the end of 2019.
As of November, government-sponsored enterprise Freddie Mac began using CSP software for certain activities related to current single-class, fixed-rate, mortgage-backed securities. This was done in conjunction with Common Securitization Solutions, a limited-liability company created by Freddie and Fannie Mae, NAFCU explained.
NAFCU said it looks forward to continued transparency during this process and will continue to advocate for credit unions' interests.