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In just three years, Fannie Mae and Freddie Mac have transferred significant credit risk on loans totaling more than 667 billion dollars in unpaid principal balance, exceeding the goals set by their conservator, according to the FHFA's Overview of Fannie Mae and Freddie Mac Credit Risk Transfer Transactions for August 2015 released Friday. With the transfer of credit risk on loans totaling more than 667 billion dollars in UPB, the GSEs have made substantial progress toward achieving the FHFA's goal of transferring more credit risk to the private sector.
FHFA said that going forward it will set specific goals in the annual conservatorship scorecard and work closely with staff members at Fannie Mae and Freddie Mac to help the GSEs develop and evaluate their credit risk transfer structures. FHFA is encouraging the GSEs to continue engaging in large volumes of meaningful credit risk transfer. More than 150 investors have participated in the GSEs' credit risk transfer programs. Asset managers make up the largest share of participating investors with 53 percent.
Some housing experts feel that millennials, the largest generation in U.S. history according to some estimates, are not as interested in homeownership than previous generations and prefer to rent instead. According to a Fannie Mae Commentary and Topic Analysis released Friday, however, millennials who rent have just as much desire to own a home as the general renter population. Fannie Mae's data found that 72 percent of millennials indicated that quote, owning makes more sense than renting because you're protected against rent increases and owning is a good investment over the long-term. Close quote
