Fannie will take the first losses on the transaction, with additional losses borne by Bayview and investors in the deal. That’s a change from the typical CRT from Fannie where a third-party like Bayview isn’t involved.

Stop-advance standard for non-agency MBS under consideration; EJF Capital works with Third Coast Bank on another CRT; MISMO proposes standards for electronic HELOCs.

Fannie Mae and Freddie Mac both saw a significant increase in CRT issuance in the first quarter. Fannie also boosted credit-risk insurance purchases, but ACIS purchases were down at Freddie. (Includes data table.)

A survey by Moody’s found that a relatively small share of banks have issued credit-risk transfer deals in recent years.

Only a handful of banks with less than $25 billion in assets have completed CRT transactions.

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.)