Items Tagged with 'Risk Sharing'

ARTICLES

Fannie Mae offloads $205 million in credit risk to insurers in new deal

Pool of loans includes 15-year, 20-year mortgages
Fannie Mae announced Thursday that it is shifting some of its credit risk away from taxpayers and onto private insurers in the latest deal from its Credit Insurance Risk Transfer program. In this deal, Fannie Mae is shifting some of the credit risk on an $11.7 billion pool of loans to various insurers.
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Urban Institute researcher urges more caution with GSE risk transfers

What happens when market conditions deteriorate?
As the government puts more and more effort into distancing taxpayers from mortgage credit risk, a different problem starts to brew. According new blog post from the Urban Institute, the government's efforts to reduce credit risk aren’t fail proof and could instead result in mortgage rates becoming significantly more volatile.
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Fannie Mae shifts more credit risk to insurers with latest deal

Completes 10th Credit Insurance Risk Transfer transaction
Fannie Mae announced Thursday that it completed its latest effort to shift some of its credit risk away from the taxpayers and onto private insurers. The latest deal, CIRT 2016-3, is Fannie Mae’s 10th Credit Insurance Risk Transfer deal since the program began in 2013.
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Latest Freddie Mac high-LTV risk-sharing mortgage bond prices tight

STACR 2015-HQ2 featured loans with 80-95% loan-to-value ratio
Freddie Mac announced the pricing of its second high loan-to-value risk-sharing bond of 2015, which is supported by loans with LTV ratios of 80-95%. According to Freddie Mac, the investor response to Structured Agency Credit Risk Series 2015-HQ2 was strong, and the deal priced tight compared with STACR Series 2015-HQ1.
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Fannie Mae to list risk-sharing bonds on Irish Stock Exchange

Will hold “sufficient” credit risk to ensure compliance with European Union rules
European investors seeking to buy into the U.S. mortgage market will now have that opportunity, after Fannie Mae announced that it plans to list all of its outstanding risk-sharing mortgage bonds on the Irish Stock Exchange.
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