The Federal Housing Finance Agency (FHFA) is seeking public input on a white paper on a proposed framework for a common securitization platform and a model pooling and servicing agreement.
Developing a new securitization infrastructure is a key goal of the FHFA Strategic Plan for Enterprise Conservatorships and builds on other initiatives already underway to align and improve the business practices of Fannie Mae and Freddie Mac. The white paper seeks to identify the core components of mortgage securitization that will be needed in the housing finance system going forward. Those core components are linked to two cornerstone operational features: a securitization platform to process payments and perform other functions that could be used by multiple issuers; and a contractual framework supporting the new infrastructure.
‘The release of this white paper is an important step laying the groundwork for the future structure of the housing finance system,’ says FHFA Acting Director Edward DeMarco. ‘Given that the securitization infrastructure could serve as a utility that would outlast Fannie Mae and Freddie Mac as we know them, we look forward to public input from all market participants and interested parties.’
FHFA is requesting public input, which must be received by Dec. 3. Input may be submitted via email to securitizationinfrastructure@fhfa.gov or directly on the FHFA's website.