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.

Credit-risk transfer activities at the GSEs — including both CAS/STACR note issuance and CIRT/ACIS reinsurance purchases — reached some of the lowest levels since the programs were founded in 2013. (Includes data table.)

As bank issuance of CRT deals increase, additional regulations and disclosure requirements are under consideration.

Ledn issues ABS backed by Bitcoin loans; fire at SFVegas prompts shift in exhibit hall; banks seek enhanced capital relief for CRTs; Fitch launches group for private ratings; Upstart sells auto loans to Bayview.

Columbia University researchers dispute the conventional wisdom that says Fannie Mae and Freddie Mac dramatically overpay CRT investors.

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.