Ed DeMarco: Merging Some of Fannie & Freddie Operations - Building a New Secondary Mortgage Market Infrastructure

March 4, 2013 in STOP FORECLOSURE FRAUD

MERS II?

FHFA’s Conservatorship Priorities for 2013

Remarks as Prepared for Delivery

Edward J. DeMarco Acting Director Federal Housing Finance Agency

March 4, 2013

"To move this project forward in 2013, we are announcing as part of the 2013 Scorecard that a new business entity will be established between Fannie Mae and Freddie Mac. We believe that setting up a new structure that is separate from the two companies is important for building a new secondary mortgage market infrastructure. Our objective, as we stated last year, is for the platform to be able to function like a market utility, as opposed to rebuilding the proprietary infrastructures of Fannie Mae and Freddie Mac. To make this clear, I expect that the new venture will be headed by a CEO and Chairman of the Board that are independent from Fannie Mae and Freddie Mac. It will also be physically located separate from Fannie Mae and Freddie Mac. Importantly, we plan on instituting a formal structure to allow for input from industry participants."

Build. Build a new securitization infrastructure, including a common securitization platform;

Contract. Contract Fannie Mae and Freddie Mac’s dominant presence in the marketplace while simplifying and shrinking certain operations;

Maintain. Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages.