Tag Archives: Credit Risk Transfer

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred $53 billion in credit risk on $1.4 trillion in mortgages.

In its latest report, Fitch Ratings details projections for future credit events and losses for the first half of 2019. Here’s what it revealed.

An FHFA report crunched the numbers since the GSEs initiated their CRT programs in 2013, and here’s what it revealed.

Rising interest rates and declining volumes leave the GSEs with little room to expand their credit risk transfer transactions. However, CRTs may have room to grow elsewhere in the market.

Two industry experts talk GSEs, CRTs, and guarantee fees and why shifting mortgage default risk from taxpayers to investors is a very good thing, including helping shield taxpayers from a dire financial crisis more onerous than ’08.

Fitch Ratings has released a new installment of its GSE Credit Risk Transfer (CRT) Loss Projections Report, which is published every six months, in January and June. The report  “details Fitch Ratings’ projections for future credit events and losses on ...

Kevin Palmer, SVP of Single-Family Credit Risk Transfer at Freddie Mac, on how credit risk transfers are indicating whether Freddie's Guarantee fees are in line with what the private market would charge.

In a Freddie Mac Perspectives blog, Kevin Palmer, SVP of Single-Family Credit Risk Transfer, explained how credit risk transfers and Guarantee fees have much more in common that one might think—one gives Freddie Mac significant insight into the other.

Fannie Mae and Freddie Mac have transferred billions in mortgage credit risk this year. But how much exactly have they moved?

Credit risk transfer (CRT) or sharing is the process in which the government-sponsored enterprises bundle up the mortgages they buy from lenders and sell a portion of the risk to private investors. Instead of the GSEs shouldering the loan risk alone, selected investors help offset any potential risk from loan defaults. CRT began as a test in 2012 and is now quickly ramping up as investor interest and governmental oversight grows. Governmental oversight makes sense—we don’t want another 2007. But why are more investors becoming so interested in CRT?