The Single Security Initiative is a joint initiative of Fannie Mae and Freddie Mac (the Enterprises), under the direction of FHFA, to develop a common mortgage-backed security. The objective is to combine the separate TBA markets of the Enterprises – currently $2.4 Trillion for Fannie Mae and $1.1 Trillion for Freddie Mac – into one larger, more liquid market. The Single Security Initiative will go live on June 3, 2019. For a further overview of Single Security, check out the video.
The implementation of the Single Security Initiative is dependent on the Common Securitization Platform (CSP). The CSP is a technology and operational platform that is being developed by Common Securitization Solutions, LLC, a joint venture of Fannie Mae and Freddie Mac. CSP will perform many of the core back office operations for the Single Security, as well as most of the Enterprises’ current securitization functions for single-family mortgages, on behalf of the Enterprises.
To learn more about these initiatives, refer to the Frequently Asked Questions (FAQs).