The Federal Housing Finance Agency’s recent report on Fannie Mae’s and Freddie Mac’s single-family credit risk transfers (CRT) focuses on securities issuance and insurance/reinsurance credit risk sharing vehicles, which account for about 90 percent of all CRT issuance to date.
The report estimates the historic and projected net costs of the organizations’ CRTs, discusses the performance of CRT vehicles during the COVID-19 pandemic, and identifies areas for further research and analysis.
Read on for more details.