The Federal House Finance Agency is committed to building a common securitization platform that Fannie Mae and Freddie Mac both will use to issue their own MBS, but there will be no blending of their products, the nation’s GSE regulator said Thursday.
In October the FHFA will publish a white paper on building an MBS platform, FHFA Acting Director Edward DeMarco told a National Association of Federal Credit Unions conference Thursday.
However, DeMarco stressed that he is not moving toward creating a single Fannie and Freddie mortgage-backed security. There has been some “confusion” around this issue, he said.
The GSEs will continue to “maintain their own securitization operations and continue to issue their own securities,” he said.
The GSE regulator expects the new securitization platform will become a public utility in the post-conservatorship world that will provide access for multiple issuers of MBS and increase competition in the mortgage market.
The FHFA’s analysis of how the GSEs could work together to build a common platform is “well underway” and will be included in the white paper, DeMarco said.