November 03, 2014CEO, Board Members Named at Common Securitization Solutions, LLC
Fannie Mae and Freddie Mac Sign Agreements to Capitalize and Operate CSS
WASHINGTON, DC – Fannie Mae (FNMA/OTC) and Freddie Mac (OTCQB: FMCC) today jointly announced that the first chief executive officer (CEO) has been named for Common Securitization Solutions, LLC (CSS), which was established by the companies to build and operate the Common Securitization Platform (CSP), a new secondary mortgage market infrastructure. Additionally, Fannie Mae and Freddie Mac each appointed two executives to the CSS Board of Managers and signed governance and operating agreements for CSS.
David M. Applegate, who led both GMAC Mortgage and GMAC Bank during a 17-year career at General Motors Acceptance Corporation, has been appointed chief executive officer of CSS. Applegate brings more than 20 years of mortgage and banking experience to his new leadership role at CSS.
Prior to joining CSS, Applegate was president, CEO and director of Homeward Residential, Inc., a Dallas-based mortgage lender and servicer with assets of $4.5 billion and a global workforce of 3,000. Previously, he was president of GMAC Mortgage and chairman of GMAC Bank from 2000-2007. At GMAC Mortgage, Applegate assembled a strong executive team that transformed the company into an industry leader. Applegate also served as president of mortgage insurer Radian Guaranty Inc., and managed a consulting practice with major financial services clients.
Jerry Weiss, Freddie Mac Executive Vice President and Chief Administrative Officer, said, "I am delighted that CSS will have a leader of such stature and quality. 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."
"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 Federal Housing Finance Agency (FHFA) to lay the foundation for a strong housing finance system for the future."
Appointments to the CSS Board of Managers are:
David Lowman, Freddie Mac Executive Vice President, Single-Family Business
David Lowman has served as executive vice president for Freddie Mac's Single-Family Business since May 2013 and is a member of the company's senior operating committee. As head of Freddie Mac's Single-Family Business, Lowman has broad responsibility for the 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. Lowman has worked in the mortgage and consumer finance business for over 30 years, serving at some of the nation's largest mortgage operations.
Jerry Weiss, Freddie Mac Executive Vice President and Chief Administrative Officer
Jerry Weiss has served as 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. He also manages Freddie Mac's Strategic Initiatives division, overseeing all significant conservatorship and corporate strategic initiatives. Weiss has over 30 years of experience in the financial services industry and joined Freddie Mac in October 2003.
Terry Edwards, Fannie Mae Executive Vice President and Chief Operating Officer
Terry Edwards has served as Fannie Mae'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.
Rick Sorkin, Fannie Mae Senior Vice President, Single-Family Pricing Strategy and Structured Transactions
Rick Sorkin has served as Fannie Mae's senior vice president – single-family pricing strategy and structured transactions since April of 2014. Previously, he was vice president of structured transactions. Sorkin's pricing strategy team sets and implements single-family guaranty pricing terms for whole loan and mortgage-backed securities business. He also is responsible for overseeing the issuance and product development of mortgage-backed structured transactions. Over the past 10 years, his team has issued more than $4 trillion in structured securities. He joined Fannie Mae in 1989.
Common Securitization Solutions, LLC is a jointly owned limited liability company formed between Fannie Mae and Freddie Mac for the purpose of designing, developing, building and operating the CSP. Common Securitization Solutions is equally owned by Fannie Mae and Freddie Mac and represents an important milestone in FHFA’s goal of building a new secondary market infrastructure. The intention of the CSP is to replace certain elements of the Fannie Mae and Freddie Mac proprietary systems for securitizing mortgages and performing associated back-office and administrative functions. The FHFA's 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac includes the goal of developing a single Enterprise mortgage-backed security as part of the efforts to build the CSP.
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