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Tag Archives: Credit Risk

Lenders Loosen Risk Standards as Rates Rise

loan defects in application form

According to a new report, mortgage lenders are taking increased credit risks similar to those of the early 2000s, Released on Tuesday, the report shows that tThe level of credit risk taken by lenders in Q1 of 2017 was about the same as the average risk taken between 2001 and 2003. The shift is likely a result of declining refinances, rising mortgage rates, and an increased share of investor, condo, and co-op purchases.

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Fannie, Freddie Transfer $18B in Risk

The FHFA’s Credit Risk Transfer Report revealed a big uptick in GSE credit risk transfer for 2016. Fannie Mae and Freddie Mac transferred a combined $18 billion in credit risk on $548 billion mortgages for the year. Risk was transferred via a variety of debt issuances, insurance and reinsurance programs, and front-end transactions.

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