Fannie, Freddie Transfer $69 Billion in Credit Risk Through Q4 2017

Since the Federal Housing Finance Agency launched a credit risk transfer program for GSEs Fannie Mae and Freddie Mac in 2013, the enterprises have transferred $69 billion in credit risk to private investors, amounting to about 3.2 percent of $2.1 trillion in unpaid principal balance, the FHFA said today. For 2017, the GSEs transferred about $20.6 billion worth of credit risk. Transfers included debt issuances, insurance and reinsurance transactions, senior-subordinate securitizations and several kinds of lender-collateralized recourse transactions.


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Monica C. Meinert

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