Fannie Mae and Freddie Mac are designing a securitization framework that will work for today’s fully-guaranteed residential MBS as well as securities with a partial government guaranty or none at all, according to an update released this week by the Federal Housing Finance Agency. Among the initiatives set for the government-sponsored enterprises by the FHFA is the development of a contractual and disclosure framework (CDF) designed to give MBS investors more clarity and confidence about what they’re buying. Along with the common securitization platform, the CDF project is a major component of the MBS architecture of the future that the GSEs are building. A lot of the CDF work involves...