Replies to post #546280 on Fannie Mae-No Politics (FNMA)

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TRANSLATION: CSP (Common Securitization Platform) is the first step toward Fannie Mae & Freddie Mac consolidation into single GSE, greasing the skids for future Treasury takeover of their books of business. (Ultimate fulfillment of Treasury's 3 decade long goal which began in Clinton Administration. 2008 was first failed hostile takeover attempt.)

“Although we need several months of data for further verification, early data suggest the launch has gone very smoothly,” the researchers stated.
And the success of the UMBS launch, they asserted, is critical because of the important groundwork it lays for future GSE reform.
“By reducing the significant competitive advantage that Fannie enjoyed over Freddie, it also helps open the way to additional competitors over time,” they wrote. “It is still difficult to imagine how a new entrant would overcome the legacy players’ enormous liquidity advantage, but moving to a single security helps ease that barrier.”
While they go on to note that the UMBS doesn’t entirely remove the significant barriers to entry, they do call it a “a meaningful first step” because it aligns the business policies and systems of the players involved, and this will make things easier for new guarantors.
“The creation of the UMBS is an important step forward in the current system,” the researchers concluded. “It not only removes an expensive inefficiency in the current system, but it also lays the groundwork for deeper structural reforms in the years to come.”