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Fannie Mae and Freddie Mac revamp their JV as fintech venture to reflect a new role in which it will sell access to the mortgage-backed securities platform to others

June 30, 2025 //  by Finnovate

Fannie Mae and Freddie Mac unveiled a new strategy for their legacy joint venture, aligning with priorities set by President Trump and their federal overseer. Their Common Securitization Solutions JV will be renamed U.S. Financial Technology to reflect a new role in which it will sell access to the mortgage-backed securities platform used to manage their $6.5 trillion portfolio to others. “We created U.S. Fin Tech to demonstrate the incredible ingenuity of American technology under President Trump’s leadership,” said Pulte, who also has similarly rebranded the Federal Housing Finance Agency he heads. The repositioning of the securities platform might be a step toward releasing the GSEs from conservatorship. “One area that is complicated and difficult under any release from conservatorship is the common securitization platform,” said Dworkin. “Under its current structure where it’s exclusively available to both Fannie Mae and Freddie Mac that presents probably insurmountable antitrust issues.” Spinning off the securities platform could address the issue.  This would require launching “a real IPO and then have an independent board manage and govern the CSP, which would become essentially a utility company,” Dworkin said. “Spinning off the CSP gives you additional value for the CSP itself, and it likely enhances the value of the enterprises, because it adds value to their MBS,” he said. That strategy could play a role in addressing a goal related to finding a way to better monetize the GSEs, although it may not be entirely in line with the thinking of those who want Fannie and Freddie to be more like other private companies that trade publicly.

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