The new securitization platform envisioned in the Federal Housing Finance Agency's (FHFA) Strategic Plan for Freddie Mac and Fannie Mae has taken several steps toward reality.  FHFA announced late Monday that Common Securitization Solutions (CSS), LLC had received a Certificate of Formation from Delaware's Secretary of State.  The new limited liability company will be jointly owned by the two government sponsored enterprises (GSEs) currently in conservatorship with FHFA, and will assume their securitization functions.

"The filing of the Certificate of Formation represents a significant milestone toward accomplishing the goal of building a new secondary mortgage market infrastructure," FHFA's Acting Director Edward J. DeMarco said.  "We are pleased with the progress being made and look forward to further developments."

The new company also has a likely new home.  FHFA said that authorized officials from both Fannie Mae and Freddie Mac had signed a three-year lease for office space in Bethesda, Maryland.

In a further indication that the new common platform may soon be up and running, the GSEs have employed an executive recruitment firm which has already begun identifying and interviewing candidates for key positions at CSS.  These include a chief executive officer and Chairman of the Board of Managers.