Secondary Market

Part of the plan includes the GSEs' conservator, FHFA, amending the preferred stock purchase agreements and suspending payment of cash dividends on Treasury's senior preferred stock.

The GSEs began their risk-sharing initiatives in 2013 as a way to transfer risk from taxpayers to private investors while the Enterprises remain in conservatorship of the FHFA. Since then, the GSEs have transferred a substantial portion of the credit risk for mortgages totaling hundreds of billions of dollars in unpaid principal balance (UPB).

Despite the hesitancy of the administration on GSE reform, the time to have a conversation about the topic is now, according to a group of analysts.

Fewer mortgage lenders are reporting that they are loosening credit standards, and many do not expect credit to become more accessible over the next few months, according to data from Fannie Mae.

Democratic lawmakers and housing advocates have been calling for the GSEs to sell non-performing loans (NPLs) to non-profits and Community Development Financial Institutions, and on Wednesday, they partially got their wish.

The Federal Housing Finance Agency said it was looking for a "responsible solution" to the issue of mortgage debt reduction.

It has been a big week for credit risk transfer transactions. Earlier this week, JPMorgan Chase announced a $1.9 billion residential mortgage-backed securities deal, and now Fannie Mae has announced its largest deal to date.

Fannie Mae and Freddie Mac returned to profitability in 2012. Since then, their net expenses have increased by more than $1 billion combined.

Freddie Mac has now transferred a substantial portion of credit risk for more than $422 billion in unpaid principal balance on single-family mortgages.

The year 2015 was a landmark one for the GSEs as they ramped up programs to excise non-performing loans from their single-family portfolios.