The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to move ahead with the development of a common securitization platform.

The common securitization platform will be jointly owned by the GSEs. And the regulator wants Fannie and Freddie to establish an “initial ownership and governance structure” for the CSP this year.

In addition, the GSEs are expected to “assign dedicated resources” for the building of the new securitization platform, according to the first progress report on the CSP project.

The CSP development team will work at an independent site (separate from Fannie and Freddie’s offices) and will be overseen by the FHFA,” the GSE regulator said Tuesday.

FHFA acting director Edward DeMarco has told Congress that it will probably take five years to get the CSP up and running.

“The design is deliberately flexible so the long-term ownership structure may be adjusted to meet the goals and direction that policymakers may set forth for housing finance reform,” the FHFA says in Tuesday’s report.

The GSE regulator plans to issue more progress reports on the development of the securitization platform and institute a formal structure for industry participants to provide their input.

Once completed, the common securitization platform will issue Fannie and Freddie MBS and possibly private-label MBS.

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