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.
ISM Manufacturing falls in April
U.S. manufacturing activity contracted in April following a single month of expansion in March, the Institute for Supply Management said.