Tag Archives: Credit Risk Transfer

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?

Freddie Mac's single-family credit risk transfer programs had a "very good year," in 2016, according to one executive.

A look back at Freddie Mac's credit risk transferring for this year as well as what the GSE has in store for 2017.

Freddie Mac has obtained three new insurance policies under its Agency Credit Insurance Structure (ACIS) program, representing the largest aggregate transaction to date, and a new milestone reached.

Freddie Mac has been evolving its risk management framework and practices since it debuted its first official credit risk transfer program in 2009, and they just recently reached a milestone.