The Federal Reserve Bank of New York said the GSEs’ credit-risk transfer programs are a positive step towards reforming the housing-finance system and suggested a few improvements, including expanding the investor base. In a FRBNY report titled “Credit-Risk Transfer and De Facto GSE Reform,” the authors credit the CRT initiative for improving the stability of the housing-finance system and advancing a number of objectives critical to GSE reform. CRTs have reduced the GSEs’ exposure to mortgage credit risk without disrupting the stability of the secondary mortgage market, they said, adding that they have also created a growing new financial market for pricing and trading risk.