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.

Will the new, forward-looking, credit-sensitive version of the Secured Overnight Financing Rate serve as the index rate for credit-risk transfer and MBS transactions?

The Fed could end its stimulus-related purchases of agency MBS by the middle of 2022; S&P official provides an example of just how conservative rating services can be when assessing non-agency MBS and ABS.

The blueprint would reverse capital requirements set in December, which offered few incentives for the GSEs to complete credit-risk transfer transactions.

Investors in Freddie’s new When-Issued K-Deal have the right to exchange them for K-deal A-M certificates to be issued in the future.