The third-party analytics models used by bond traders now accept VantageScore 4.0 loans, but their methodologies were designed before the confusion around loan-level price adjustment grids.

Volatility from the war with Iran prompted a slowdown in CRT issuance and wider spreads on the deals Fannie Mae and Freddie Mac issued during the second quarter of 2026. (Includes data table.)

Banks are expected to increase their use of synthetic-risk transfers following greater clarity on the products from regulators.

A proposal to revise Basel capital requirements for banks included some provisions that could have a negative impact on credit-risk transfer activity, according to industry participants.

Urban Institute researchers say the mortgage industry will experience slightly better capital treatment as a result of the changes to the Basel III Endgame, but they recommend some improvements.

Economists note that the pricing of mortgage credit risk depends not only on the quality of the underlying mortgages but also on who ultimately bears that risk.

Fannie Mae and Freddie Mac each issued two CRT transactions during the first quarter of 2026, including deals in March amid broader economic volatility. (Includes data table.)

Democrats questioned the risk-management effects of CRT at Fannie Mae and Freddie Mac under FHFA Director Bill Pulte.

The revised proposals would reduce capital requirements for banks, both for MBS holdings and whole loans in portfolio. The change would provide incentives for banks to retain more originations in portfolio.

The $562.5 million offering is linked to a pool of loans with a total unpaid principal balance of $5.0 billion.