If the GSEs are released from conservatorship, some participants in the agency MBS market insist the to-be-announced market, uniform MBS and Fannie/Freddie CRT activity should remain untouched.

Public disclosure of credit-risk transfer issuance by banks is limited, but investor demand looks strong and activity is likely to increase.

Trump’s nominee to head FHFA didn’t do anything to embarrass himself at his confirmation hearing this week, but he also didn’t demonstrate a deep understanding of housing finance.

Freddie Mac’s superior performance in 2024 was largely due to higher profits in its multifamily business.

Combined issuance of Fannie Mae CAS and Freddie Mac STACRs came to $8.31 billion in 2024 — the lowest total since 2013, the year GSE CRT activity started. (Includes data table.)

STACR and ACIS activity in 2025 is expected to be similar to 2024, or slightly higher, due to a larger pipeline of loans eligible for inclusion in CRT.

The new bonds help the GSEs reduce the amount of capital they must set aside under the enterprise regulatory capital framework.

Officials at Rithm Capital believe that regulatory uncertainty will lead banks to sell more assets through asset-based finance structures, turning to asset managers like Rithm.

Investor interest in bank credit-risk transactions is expected to grow even if the transactions face regulatory challenges.

Spreads on GSE CRT issuance are close to all-time tights, with strong demand from money managers, hedge funds and insurance companies. (Includes data table.)