CFTC Provides No-Action Letter Tied to Bank CRTThe move reduces some regulatory ambiguity for banks that issue certain credit-risk transfer transactions.

Fannie’s CAS and CIRT volumes fell sharply in the third quarter. Freddie STACR issuance was up from a weak second quarter, but ACIS volume was down 56.2%. (Includes data table.)

Rising delinquencies on auto loans and recent bankruptcy filings by subprime auto lenders may have spooked some ABS investors.

Researchers at S&P Global used the difference between Classic FICO scores and the scores of VantageScore 4.0 to assess the impact of trended data.

Low debt-to-income ratio levels and pool diversification should protect residential MBS investors from losses due to rising premiums for property insurance, according to Moody’s Ratings.

Federal Reserve guidance issued in 2023 has opened up depositories to issue more synthetic-risk transfer securitizations in a market that was historically dominated by European banks.

Credit-risk transfer activities at Fannie Mae and Freddie Mac wobbled in the second quarter after a modest increase in the first three months of 2025. Issuance fell for STACRs but not for CAS notes. (Includes data table.)

The partnership adds to the growing number of issuers who are working with third parties to offset capital requirements for risk retention.

To this point, Freddie has issued multifamily risk-sharing transactions without ratings. The Morningstar DBRS rating could open these multifamily CRT deals to institutions that only invest in rated transactions.

Fannie will take the first losses on the transaction, with additional losses borne by Bayview and investors in the deal. That’s a change from the typical CRT from Fannie where a third-party like Bayview isn’t involved.