FHFA Seeks Input on Credit Risk Transfer Programs

The Federal Housing Finance Agency today released a report on how Fannie Mae and Freddie Mac share credit risk with the private sector through primary mortgage insurance and credit risk transfer transactions. Included with the release of the report was a request for public comment on the GSEs’ credit risk transfer processes, as well as proposals to adopt additional front-end structures, such as a deeper mortgage insurance structure. Since 2013, the GSEs have transferred about $30.6 billion in credit risk to private entities, shifting risk away from taxpayers.

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About Author

Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and a senior editor at the American Bankers Association, where she oversees ABA Daily Newsbytes.