Mortgage industry stakeholders welcomed Sandra Thompson’s nomination, touting her achievements in her current role as acting director of the Federal Housing Finance Agency.

Changes in FHFA leadership and in the structure of some CRT offerings have altered the calculations of investors.

Fannie Mae’s latest credit insurance-risk transfer transaction included 20 reinsurers taking on $31.7 billion in unpaid principal balance.

Don Layton said critics don’t like credit-risk transfers because they make the GSEs stronger and more durable.

Bridge Investment Group, a major player in the multifamily sector, said the proposed changes to the enterprise regulatory capital framework could actually increase the capital requirements for the GSEs.

After the FHFA revealed its intent to reduce GSE capital requirements for CRT exposure, Fannie announced plans to get back in the market. (Includes data chart.)

By raising the income limit for RefiNow and RefiPossible, FHFA has upped the pool of borrowers eligible for a refi by nearly a third. What that does to prepayment speeds depends on the uptake of the programs.

Fannie paused its CRT issuance in 2020 after the FHFA proposed changes to the capital treatment of CRT transactions. Freddie continued to issue deals, but Fannie wasn’t persuaded to return until a proposal by the FHFA in September.

A Structured Finance Association white paper finds the implementation of CRT programs nearly doubles the ROC for Fannie and Freddie.

Fannie Mae will resume credit-risk transfer program after FHFA proposed capital relief for the transactions. Investors look forward to new opportunities.