WASHINGTON — After several years of preparation, Fannie Mae and Freddie Mac will begin issuing a new joint mortgage-backed security starting June 3, 2019, the Federal Housing Finance Agency announced Wednesday.
Currently, the two government-sponsored companies issue mortgage-backed securities through the market to be announced. But this will be replaced by the Uniform Mortgage-Backed Security, issued through the common securitization platform.
“We have now set a specific date when companies will begin issuing UMBS and I urge the industry to prepare now to ensure a smooth and successful implementation,” said FHFA Director Mel Watt. , in a press release.
“The transition to the new common security requires planning, investment and preparation from a wide variety of market players,” he added.
Since 2016, Freddie Mac has used Common Securitization Solutions – a joint venture of Fannie Mae and Freddie Mac – for certain outstanding mortgage-backed securities activities.
“CSS uses CSP to process approximately 1,000 new securities each month and performs monthly bond administration functions related to 260,000 single-class securities backed by approximately 9.8 million loans,” the funding agency said. housing in its press release. “With the launch of UMBS on June 3, 2019, Fannie Mae will join Freddie Mac in using CSP and CSS operations for these functions. At that time, the CSP and CSS operations capabilities will expand to include the administration of multi-class titles. and mixed Enterprise UMBS and production of UMBS disclosures.”