Spikes in amortization income, guarantee-fee income and credit-related expenses are all closely tied to the government’s intervention in the coronavirus crisis. (Includes data chart.)
In addition to a couple of traditional K-deals, Freddie Mac offered sustainability bonds and deals based on supplemental loans and small-balance loans.
Fannie financed $76 billion through its Delegated Underwriting and Servicing program, while Freddie pumped out $82.5 billion in loan purchases and guarantees.
Freddie’s multifamily structured credit risk notes are structured on actual losses. Previous issuances were based on a fixed-severity formula, which created a gap between when losses were booked and reimbursed.