Items Tagged with 'risk-sharing deals'

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  • Fannie Mae makes more information available for risk-sharing investors

    Will now make monthly loan-level disclosure data on for CIRT deals
    A recent report suggested that the government-sponsored enterprises’ risk-sharing deals will be a big target for investors in 2018. In order to provide investors with as much detail as possible, Fannie Mae announced this week that it is making additional disclosures about some of its risk-sharing deals.
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  • Here's the final tally on Fannie, Freddie credit risk-sharing in 2016

    FHFA report details GSEs' efforts to offload risk
    In 2013, Fannie Mae and Freddie Mac began shifting credit risk to investors as part of a plan to reduce the overall risk of the government-sponsored enterprises, and therefore, the risk to the American taxpayers. And a new report published Monday by the Federal Housing Finance Agency shows how much progress the GSEs are making in their collective effort to protect the taxpayers from risk.
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  • Fannie Mae announces new front-end credit risk-sharing deal

    Deal with insurers provides up to $375 million in coverage
    Fannie Mae announced Friday that it executed its second front-end credit risk-sharing deal through its Credit Insurance Risk Transfer program. The deal provides insurance coverage on a maximum coverage of approximately $375 million from pools of single-family mortgages that carry a combined unpaid principal balance of approximately $15 billion.
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  • Regulators deny JPMorgan Chase, Redwood Trust securitization innovation

    Private market risk-sharing effort rejected by OCC
    Last year saw a bit of innovation in the private-label securitization market, as JPMorgan Chase launched a new securitization option where some of the risk on non-agency mortgages is transferred to the private market through a risk-sharing deal. But, the Office of the Comptroller of the Currency rejected the innovative securitization structure. What does it mean going forward?
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  • Freddie Mac offloads $285m in credit risk to insurers

    Risk-transfers "significant portion" of $16bn pool of 15-year mortgages
    Freddie Mac announced Tuesday that it closed out 2016 by obtaining an insurance policy that could cover a combined maximum limit of approximately $285 million of credit losses. Here are the details.
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  • Congress to consider bill requiring Fannie Mae, Freddie Mac to offload more risk

    New bill facilitates additional credit-risk transfers to private market
    Despite a new report from Moody’s Investors Service stating that wholesale reform of the government-sponsored enterprises is years away, some members of Congress are pursuing changes to how Fannie Mae and Freddie Mac operate. On Thursday, Reps. Ed Royce, R-Calif., and Gwen Moore, D-Wisc., introduced a new bill in the House of Representatives that would require the GSEs to offload more credit risk onto the private sector.
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  • 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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  • Freddie Mac launches "Deep MI" credit risk-sharing pilot program

    Plans to share even more risk with mortgage insurers
    Freddie Mac announced Monday that it is prepared to take the next step in the government’s continuing efforts to shed some of the credit risk facing the government-sponsored enterprises through a pilot program featuring deep mortgage insurance. So, what does this mean? More mortgage risk will now be transferred to private mortgage insurance companies.
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  • Moody's: Bond investors will also benefit from FHFA HARP replacement

    Refi replacement will bolster GSE risk-sharing deals
    The Federal Housing Finance Agency shook up the mortgage world recently when it announced not only that it planned to extend the Home Affordable Refinance Program for nine additional months, but also that it planned to replace HARP with a new mortgage refinance program. A new report from Moody’s suggests that the new refinance program is also beneficial to the investors that buy up some of the credit risk tied to the mortgages.
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