Freddie CRTs Indicate G-Fees More Stable Than Private Sector Pricing
September 22, 2017
Credit-risk transfer transactions can be multifunctional in that they do more than just help take the risk off the GSEs. They’re also a good indicator for setting guarantee fees. Freddie Mac said CRTs are often indicative of what the private market would charge for the risk taken on by a GSE. And the appropriate level of g-fees has been an important issue in housing finance.