The Reason Fannie And Freddie Shares Are Rising Today
Seeking Alpha - October 21, 2014 - October 22, 2014
Seeking Alpha, By David Sims
Yesterday, at the Mortgage Bankers Association’s annual conference in Las Vegas, Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) shareholders had reasons to be optimistic.
Federal Housing Finance Agency (FHFA) Director Mel Watt gave a speech to the room of bankers that included some anticipated policy changes. Of importance to shareholders, however, was the inclusion of wording regarding the Common Securitization Platform (CSP), which has been under construction for several years. Mr. Watt confirmed what many shareholders believed when he said, “Now, let me turn my attention to the continuing progress we are making in the multiyear process of developing the Common Securitization Platform , which will create a shared securitization infrastructure for Fannie Mae and Freddie Mac. As I announced in May, we are focusing on ensuring that the CSP fills the needs of Fannie Mae and Freddie Mac to carry out most of their current securitization functions. To achieve these objectives, FHFA and the Enterprises have revised the governance structure and operating agreement for Common Securitization Solutions (CSS). CSS is a joint venture owned by both Fannie Mae and Freddie Mac and is the corporate entity that we expect ultimately to house and operate the Common Securitization Platform.”
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