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Volume 2016 - Number 20

May 27, 2016

Downloads Available: GSE Risk-Transfer Activity - 4Q13-1Q16


Test of Deeper MI Credit-Risk Transfer May Happen Later This Year, But GSEs Still Wary of the Risks

One of the government-sponsored enterprises appears likely to test a form of credit-risk transfer that mortgage bankers have been clamoring for: transactions that allow mortgage sellers to pay lower MBS guarantee fees on loans that have deeper mortgage insurance coverage than is required by the GSE charters. Robert Schaefer, vice president for credit enhancement strategy at Fannie Mae, said there is “a high probability that we will do an MI deal later this year that addresses the pain points” the GSE sees in the deeper MI concept. “We are talking...[Includes one data table]

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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.

 

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