10/07/13 - At the moment, the CSS will be under the governance of the FHFA in the conservatorship and headed by James Kittredge who may be titled as Chief Executive Officer and Chairman of the Board. The GSEs and CSS will work co-dependently as security issuer and agent and Kittredge will work independently in running the CSS as a LLC on a wholly separated business campus while being overseen by the FHFA and Ed DeMarco. So goes the plan.
In the near future, Fannie and Freddie will be the primary users of their securitization technological infrastructure as issuers of MBS with their securitization agent being the CSS. The CSS will be the agent of the GSEs. It is planned that the CSS will be the agent for other issuers of securities in the secondary mortgage market such as mortgage lenders, mortgage banks, etc.
This situation will remain like this until Congress comes up with meaningful housing finance reform legislation. So far, Congress has not come up with legislation sophisticated enough to handle housing finance reform. And since there is no consensus on what that legislation would be at the present time, there will be there nothing of significance happening in 2013 and perhaps 2014 depending on movement and outcomes of a variety of political, legal and economic conditions (e.g. government shutdown and debt ceiling, Obamacare issues, Dodd-Frank enactment, Congressional Committee hearings, floor votes, reelection campaigns, quantitative easing, tapering, the various lawsuits vs the banks, FHFA and the US Treasury, foreign affairs, etc.)
So the CSS is not a done deal yet. It is still in the process of design and that design and its functions can evolve depending on the FHFA, GSEs, CSS, Congress, and housing finance stakeholders. No one kwhere it will end up in the scheme of the housing finance industry and secondary mortgage market.