Fannie Mae and Freddie Mac have taken another step in the development and day-to-day management of a single GSE bond by joining together in the formation of a new company.

The two companies established Common Securitization Solutions, a jointly owned limited liability company, with the goal of facilitating the design and eventual implementation of the single GSE bond through the Common Securitization Platform.

Common Securitization Solutions will operate the Common Securitization Platform once it is established, although there has been no acknowledgment of a specific timeline for the development of either the single GSE bond or the Common Securitization Platform to this point.

When the GSE’s conservator, the Federal Housing Finance Agency, released its proposal for the “Single Security” in August, the agency said that it would take “multiple years” to build the single security.

While the process may take multiple years, the GSE’s have continued to further the vision for the future laid out by FHFA Director Mel Watt in his first public speech as FHFA director.

“After extensive discussion within FHFA and with the Enterprises, we have clarified that the agency’s top objective for the Common Securitization Platform is to make sure that it works for the benefit of Fannie Mae and Freddie Mac,” Watt said at the time.

“Over the last four months, we have identified the risks involved in transitioning to a common securitization platform and reviewed how to manage those risks,” Watt continued. “We found that, because of the many variables involved, the main danger to the CSP effort would be pursuing too many objectives all at the same time.”

Now the GSE’s are one step closer to making Watt’s plans a reality.

The GSEs have chosen David Applegate to serve as chief executive officer of Common Securitization Solutions. Applegate joins Common Securitization Solutions from Homeward Residential, a Dallas-based mortgage lender and servicer.

Applegate was Homeward Residential’s CEO and director. Earlier in his career, Applegate led both GMAC Mortgage and GMAC Bank during a 17-year career at General Motors Acceptance Corporation. Applegate has also served as president of mortgage insurer Radian Guaranty.

“I am delighted that CSS will have a leader of such stature and quality,” Jerry Weiss, Freddie Mac executive vice president and chief administrative officer, said. “David Applegate will help ensure that CSS forms a sound foundation on which to rebuild the infrastructure of the country’s secondary mortgage market and launch a single security. Freddie Mac is pleased to be playing a leading role in this important project.”

Weiss was also named to the CSS Board of Managers, along with David Lowman, Freddie’s executive vice president of single-family business; Terry Edwards, Fannie’s executive vice president and chief operating officer; and Rick Sorkin, Fannie’s senior vice president of single-family pricing strategy and structured transactions.

Weiss has served as Freddie’s executive vice president and chief administrative officer since July 2010 and is a member of Freddie Mac's senior operating committee.

Weiss has overall responsibility for managing the Freddie Mac’s external and regulatory affairs and serves as the company's senior executive liaison to the FHFA and the U.S. Department of the Treasury.

Lowman has served as executive vice president for Freddie’s single-family business since May 2013 and is a member of the company's senior operating committee.

Lowman has broad responsibility for Freddie’s line of business, including managing the company's relationships with its seller/servicers, the performance of Freddie Mac's guarantee book of business, securitization of new business, and all sourcing, servicing and business operations.

Edwards has served as Fannie’s executive vice president and chief operating officer since 2013. He joined Fannie Mae in September 2009 to lead the company’s foreclosure prevention and loss mitigation activities for its single-family book of business. Prior to that, Edwards was president and CEO of PHH Corporation, where he served for nearly three decades in a variety of executive roles.

Sorkin has served as Fannie Mae's senior vice president – single-family pricing strategy and structured transactions since April 2014. Previously, he was vice president of structured transactions.

“CSS is poised to take the next steps in building a future securitization infrastructure,” said Andrew Bon Salle, Fannie Mae executive vice president, single-family underwriting, pricing and capital markets.

“David Applegate is a respected leader in the industry who will bring deep expertise in mortgage finance to CSS.  Fannie Mae looks forward to working with CSS, Freddie Mac and the FHFA to lay the foundation for a strong housing finance system for the future.”

Watt said he was pleased with the progress made by the GSEs and with the appointment of Applegate.

“David has the skills and experience needed at this important juncture in the development of the CSP to move it to launch,” Watt said. “The new Board of Managers structure – with two representatives from each company – enhances the ability to support the Enterprises’ securitization functions. FHFA remains committed to achieving a seamless CSP launch, and I am confident the steps announced today, combined with ongoing input from stakeholders, will help ensure success.”