Fannie Mae and Freddie Mac are expected to explore more front-end risk-sharing transactions while continuing to issue their popular debt offerings that pay investors based on the performance of reference pools of newly originated mortgages. Redwood Trust has done front-end risk-share deals with both Fannie and Freddie. The most recent was a transaction with Freddie in the third quarter, which covered a $1 billion pool and Redwood absorbing the first 1 percent of credit losses on the delivered loans. “Redwood expects...