Questions raised by the Fed prompted big banks to pause CRT issuance. Also, CRT issuance by the GSEs is expected to slow in 2023.

Rising spreads brought credit-risk transfer issuance to a halt in the fourth quarter and more than halved reinsurance transactions. Still, combined Fannie and Freddie CRT deals hit a record $21.64 billion in 2022. (Includes data chart.)

Credit Suisse completed the first part of the sale of its securitized products group; tighter pricing for Fannie with latest CRT offering; SEC’s rating service report light on details; retrial in GSE shareholder case set for July; RMF’s planned securitization scuttled.

The GSEs’ social disclosures should be as granular and specific as those reported for credit-risk transfer deals, according to investors.

Spreads tightened this week for a new CRT transaction from Fannie and new non-agency MBS; prepayment rates on agency MBS exceptionally low; lessons from Silvergate Bank’s crypto activity.

Non-QMs account for nearly 60% of the dollar volume of Western Alliance Bank’s second credit-risk transfer transaction of the year.

Investors appear increasingly reluctant to sell their credit-risk transfer notes back to the enterprises at the prices Fannie and Freddie are offering.

Home price deceleration forced Fannie and Freddie to set aside money for potential losses on the single-family side, while high interest rates are the major risk for multifamily. (Includes data chart.)

New York-based Basis Multifamily Finance becomes the first minority/women-owned business enterprise in Fannie Mae’s Delegated Underwriter and Servicer Program.

With interest rates rising, investors want higher premiums on credit-risk transfers. And that makes the transactions less economically appealing for Fannie Mae and Freddie Mac. (Includes data chart.)