Despite an uptick in CRT issuance, high costs continue to drive more risk retention at Fannie Mae and Freddie Mac.

The capital markets teams at Fannie Mae and Freddie Mac combined announced five transactions over the past week.

Lingering capital shortfalls belie higher net incomes at Fannie Mae and Freddie Mae in 2023. (Includes data table.)

The capital markets teams at Fannie and Freddie churned out a reperforming loan sale, a Guaranteed Multifamily Structures deal and a Structured Agency Credit Risk transaction.

Fannie churns out a CRT transaction and an NPL sale, its first real capital markets activity since November.

Freddie executed its first five-year K-deals since 2016 and its first single-asset single-borrower securities in two years.

Andrew Davidson & Co. executive Richard Cooperstein says the regulatory capital requirements for the GSEs should be set at 1.5 times risk capital, about 1.13%.

The mortgage giant executed five credit-risk transfer transactions in the space of a week.

Fannie Mae and Freddie Mac revenues ticked up in the third quarter, but an increase in net expenses cut into profits. Those expenses included damages and interest awarded to shareholders in Fairholme v. FHFA. (Includes data table.)

As the GSEs try to redeem uneconomic credit-risk transfer notes from investors, the premiums offered continue to shrink.