Home | Daily Dose | The Risk Involved With GSE Credit Risk Transfer
Print This Post Print This Post

The Risk Involved With GSE Credit Risk Transfer

Money Steps BHWhile the GSEs remain in conservatorship and taxpayers remain on the hook for mortgage credit risk, the Enterprises have been transferring a portion of credit risk on single-family mortgages to private investors for three years now through various programs like the Structured Agency Credit Risk (STACR) for Freddie Mac and the Connecticut Avenue Series (CAS).

However, volatility in mortgage rates could result from relying predominantly on these transactions to reduce risk to taxpayers, according to a report from Karan Kaul of the Urban Institute released on Thursday. The straightforward approach of diversifying private capital sources would help to avoid this outcome, according to Kaul.

Since STACR and CAS transactions began in 2013, Fannie Mae has transferred the credit risk for a fifth of its mortgage portfolio to private investors and Freddie Mac has laid off risk for about a third of its portfolio to the private market. The GSEs’ regulator since 2008, the FHFA, is now requiring Fannie Mae and Freddie Mac to transfer the risk on 90 percent of the single-family loans they acquire this year.

Securities are typically sold through STACR and CAS to investors in multiple tranches—two higher-risk tranches and two safer tranches. The brief history of STACR and CAS revealed that the volatility in the higher risk tranches has been high, while it has been considerably less for safer tranches. History has also shown that investors generally demand higher interest rates on their investment when the market deteriorates, such as earlier this year with the combination of an oil price decline in the U.S. and worries about a slowdown in China, according to Kaul.

6-9 UI Graph

“When markets are stable, investors see little risk and are comfortable with lower returns on their money,” Kaul said. “As volatility and risk increase, investors demand higher returns.”

While borrowers are currently for the most part protected from mortgage rate volatility because the guarantee fees borrowers pay on GSE-backed mortgages are unaffected by market conditions, the secondary market is moving toward a system where most of the credit risk will be borne by private investors.

“In such a system, market conditions will inform and influence the mortgage rate,” Kaul said. “And if that system depends heavily on capital markets transactions, that rate volatility—like that experienced earlier this year—will be directly and consistently passed on to borrowers.”

According to Kaul, in the worst-case scenario would include investors pulling back due to market stress, which would severely constrain availability of credit. Kaul said he believes that diversifying private capital sources would be the only way to avoid such a scenario.

About Author: Brian Honea

Brian Honea
Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.


  1. Pingback: The Risk Involved With GSE Credit Risk Transfer - Appraisal Buzz

  2. Pingback: The Risk Involved With GSE Credit Risk Transfer - Brokers TitleBrokers Title

  3. Pingback: x78bn5t37bc45rtb3x45ctbwxds

  4. Pingback: دانلود قسمت هشتم شهرزاد دوم

  5. Pingback: دانلود شهرزاد قسمت دوازدهم فصل دوم

  6. Pingback: دانلود شهرزاد قسمت هشتم فصل دوم

  7. Pingback: قیمت پنجره

  8. Pingback: دانلود قسمت ششم فصل دوم شهرزاد

  9. Pingback: دانلود قسمت 10 شهرزاد دوم

  10. Pingback: Dillion Harper

  11. Pingback: Jessie Volt

  12. Pingback: Rayna Rose

  13. Pingback: Mia Malkova

  14. Pingback: Ana Foxxx

  15. Pingback: Paleo Diet

  16. Pingback: lesbian porn xxx

  17. Pingback: Medical

  18. Pingback: سریال عاشقانه

  19. Pingback: Hunde t-shirts

  20. Pingback: دانلود قسمت پنجم شهرزاد دوم

  21. Pingback: دانلود قسمت سوم شهرزاد دوم

  22. Pingback: cheap jerseys australia

  23. Pingback: porno gratis

  24. Pingback: videos porno

  25. Pingback: titleist 917 driver

  26. Pingback: videos porno

  27. Pingback: porno

  28. Pingback: videos porno

  29. Pingback: videos porno

  30. Pingback: porno

  31. Pingback: porno gratis

  32. Pingback: porno

  33. Pingback: porno gratis

  34. Pingback: videos porno

  35. Pingback: CBD Pills

  36. Pingback: آموزش پنجره دوجداره

  37. Pingback: پنجره دوجداره وین تک

  38. Pingback: پنجره ضد سرقت ترک

  39. Pingback: دانلود سریال عاشقانه

  40. Pingback: love compatibility by full name

  41. Pingback: Acne Facial Treatments Weston

  42. Pingback: Facial Spa Services Lauderdale-by-the-Sea

  43. Pingback: Facial Spa Services Margate

  44. Pingback: Acne Facial Treatments Plantation

  45. Pingback: دانلود موزیک

  46. Pingback: دانلود قسمت پنجم شهرزاد دوم

  47. Pingback: Roof Repair Long Island

  48. Pingback: St. Louis Wedding Photography

  49. Pingback: zynga poker chips for sale

  50. Pingback: پنجره

  51. Pingback: sale LED Recessed lights

  52. Pingback: پنجره

  53. Pingback: coin-banks bitcoin

  54. Pingback: coin-banks trading

  55. Pingback: magazin pescuit

  56. Pingback: coin-banks

  57. Pingback: Porn

  58. Pingback: coin-banks trading

  59. Pingback: m tech legend

  60. Pingback: ici

  61. Pingback: funciona

  62. Pingback: کول دانلول

  63. Pingback: anime series

  64. Pingback: ping g30 driver for sale

  65. Pingback: دانلود شهرزاد 13

  66. Pingback: دانلود شهرزاد قسمت 15 پانزده

  67. Pingback: پنجره

  68. Pingback: دانلود شهرزاد قسمت 15

  69. Pingback: Strasbourg travel vlog

  70. Pingback: vpn

  71. Pingback: zobacz

  72. Pingback:

  73. Pingback: www

  74. Pingback: Going Here

  75. Pingback: دانلود سریال شهرزاد قسمت 16

  76. Pingback: blockchain

  77. Pingback: دانلود فیلم ایرانی

  78. Pingback: 食品

  79. Pingback: دانلود قسمت دوم عالیجناب

  80. Pingback: دانلود فیلم

  81. Pingback: work from home

  82. Pingback: دانلود عالیجناب قسمت اول

  83. Pingback: clique aqui

  84. Pingback:

  85. Pingback: political polls twitter

  86. Pingback: game

  87. Pingback: auto repair services in Winston Salem

  88. Pingback: قیمت پنجره دوجداره در ایران

  89. Pingback: دانلود فیلم

  90. Pingback: آموزش پنجره دوجداره

  91. Pingback: شرکت تولیدی پنجره دوجداره

  92. Pingback: get tech updates

  93. Pingback: Carpet Cleaning harker heights TX

  94. Pingback: cheap loans

  95. Pingback: دانلود فیلم

  96. Pingback: rent home

  97. Pingback: aws online course

  98. Pingback: دانلود فیلم سریال ایرانی

  99. Pingback: دانلود فیلم

  100. Pingback: Search Engine Optimisation UK

  101. Pingback: پنجره

  102. Pingback: پنجره

  103. Pingback: دانلود فیلم

  104. Pingback: پنجره دوجداره

  105. Pingback: پنجره ضد سرقت

  106. Pingback: قیمت پنجره دوجداره

  107. Pingback:

  108. Pingback: پنجره دوجداره

  109. Pingback: buy real weed online cheap

  110. Pingback: مشاوره کسب و کار اینترنتی

  111. Pingback: drugs

  112. Pingback: Mitch McConnell

  113. Pingback: walmartone login

  114. Pingback: Limos Bus Vancouver BC

  115. Pingback: find out here now

  116. Pingback:

  117. Pingback: private proxies

  118. Pingback: دانلود فیلم اکسیدان

  119. Pingback: window

  120. Pingback: download best

  121. Pingback: دانلود

  122. Pingback: window

  123. Pingback: buy jordans cheap

  124. Pingback: united concordia dental fee

  125. Pingback: local plumber

  126. Pingback: Esse site

  127. Pingback: پنجره

  128. Pingback: پنجره

  129. Pingback: پنجره دوجداره

  130. Pingback: Learn Colors

  131. Pingback: turnkey drop shipping stores

  132. Pingback: Seo

  133. Pingback:

  134. Pingback: garden bridge

  135. Pingback: Tobi

  136. Pingback: usi tech

  137. Pingback: short haircuts

  138. Pingback: صيانه

  139. Pingback: gay porn

  140. Pingback: click

  141. Pingback: mais informações

  142. Pingback: karaj

  143. Pingback: charts all over the world

  144. Pingback: دانلود فیلم

  145. Pingback: dip bowl

  146. Pingback: steel

  147. Pingback: Way Out of Foreclosure

  148. Pingback: download

  149. Pingback: دانلود

  150. Pingback: پنجره دوجداره

  151. Pingback: window

  152. Pingback: garden bridges San Francisco

  153. Pingback: jacksonville seo company

  154. Pingback: real estate wordpress themes responsive

  155. Pingback: Bad Credit Remortgages

  156. Pingback: Sandra

  157. Pingback: what that

  158. Pingback: watch movies online

  159. Pingback: commercial air conditioner repair Montclair CA

  160. Pingback: Sexy teen redhead Maddy Oreilly fucks her first big dick

  161. Pingback: personnel consultancy

  162. Pingback: Easiest Way To Make Money Without a Website

  163. Pingback: remove blackheads

  164. Pingback: cheap jordans free shipping

  165. Pingback: car shipping

  166. Pingback: buy illegal seo

  167. Pingback: test banks for textbooks

  168. Pingback:

  169. Pingback:

  170. Pingback: mma footwear

  171. Pingback: buy illegal backlinks

  172. Pingback: پنجره

  173. Pingback: how to make capricorn male fall in love

  174. Pingback: پنجره

  175. Pingback: پنجره کرج

  176. Pingback: look what I found

  177. Pingback: دانلود فیلم دوبله شده

  178. Pingback: دانلود فیلم اینه بغل

  179. Pingback: دانلود فیلم دوبله شده

  180. Pingback: headhunting

  181. Pingback: دانلود سریال شهرزاد فصل دوم

  182. Pingback: دانلود سریال شهرزاد

  183. Pingback: melissa moore porn

  184. Pingback: Car seat cover

  185. Pingback: Shopping cart cover

  186. Pingback: billboard

  187. Pingback: free iphone porn

  188. Pingback: canada goose Verkooppunten

  189. Pingback: real caller apk

  190. Pingback: Limo Service Vancouver BC & Party Limos Bus Vancouver BC

  191. Pingback: car seat accessories

  192. Pingback: SkinAlley

  193. Pingback: child abuse awareness month

  194. Pingback: a fantastic read

  195. Pingback: Locksmith

  196. Pingback: Judi Bola Online

  197. Pingback: Filosofi Bola Kaki

  198. Pingback: maximainvestments

  199. Pingback: free android porn

  200. Pingback: helpful resources

  201. Pingback: porn movie

  202. Pingback: پنجره دوجداره

  203. Pingback: free pay

  204. Pingback: فیلم نهنگ عنبر

  205. Pingback: دانلود موزیک

  206. Pingback: gggo there

  207. Pingback: Judi Online

  208. Pingback: Bandar Judi Bola Indonesia

  209. Pingback: link


  211. Pingback: buy hacklink

  212. Pingback: pirater un compte facebook


  214. Pingback: astrology free compatibility report

  215. Pingback: Oddsmonkey

  216. Pingback: laundry room

  217. Pingback: 2 فیلم نهنگ عنبر

  218. Pingback: Oddsmonkey

  219. Pingback: Oddsmonkey

  220. Pingback: Oddsmonkey

  221. Pingback: Oddsmonkey

  222. Pingback: Oddsmonkey

  223. Pingback: eyevage

  224. Pingback: somulin review

  225. Pingback:

  226. Pingback: www.consumerhealthdigest

  227. Pingback:

  228. Pingback: steel funnel

  229. Pingback: نهنگ عنبر

  230. Pingback: Stretchy car seat cover

  231. Pingback: switchable film

  232. Pingback: avakin life hack apk

  233. Pingback: Jueza juzgado 47

  234. Pingback: Hakukoneoptimointi Espoo

  235. Pingback: yDifferent Types of Drones

  236. Pingback: mobile phone accessories

  237. Pingback:

  238. Pingback: iTunes

  239. Pingback: news abp

  240. Pingback: here

  241. Pingback: Bitcoin News

  242. Pingback: La Diete 2 Semaines pdf

  243. Pingback: http://

  244. Pingback: I Love Sex Heat Change Mug

  245. Pingback: it recycling

  246. Pingback: buy viagra online

  247. Pingback: savporn

  248. Pingback: computer recycling bristol

  249. Pingback: Tri-Cities Wa Wireless Cell Store

  250. Pingback: 3D Model Office 007

  251. Pingback: berita global

  252. Pingback: click now

  253. Pingback: desi serial

  254. Pingback: Yahoo Finance

  255. Pingback: Irvine Commercial Real estate Broker

  256. Pingback: flexispy reviews

  257. Pingback: igienizare aer conditionat

  258. Pingback: pornmd videos

  259. Pingback: Peter Schatzberg

  260. Pingback: loft bed singapore

  261. Pingback: hearing aids

  262. Pingback: credit repair ebook

  263. Pingback: porn city

  264. Pingback: programas de ventas gratis

  265. Pingback: Antep fıstığı

  266. Pingback: pirater un compte facebook

  267. Pingback: cheap air conditioning

  268. Pingback: Prince Frank VON ANHALT-Nassau

  269. Pingback: buy google hacklink

  270. Pingback: casinos online

  271. Pingback: discounts

  272. Pingback: cheap snapbacks

  273. Pingback: eico insurance quotes

  274. Pingback: real casino games

  275. Pingback: progressive pay bill

  276. Pingback: Clothing & Accessories

  277. Pingback: barkbox dogs

  278. Pingback: green tea calories

  279. Pingback: michael kors factory outlet

  280. Pingback: top porn sites; best free porn sites

  281. Pingback: get medical marijuana card online medical marijuana doctor Livermore

  282. Pingback: click the following article

  283. Pingback: Ontario medical marijuana cards

  284. Pingback: anthony morrison

  285. Pingback: ceme online terbaik

  286. Pingback: Creation

  287. Pingback: al

  288. Pingback: louboutin australia

  289. Pingback: Pinganillo

  290. Pingback: anthony morrison

  291. Pingback: matthew pillmore

  292. Pingback: personal injury lawyer

  293. Pingback: coasters set

  294. Pingback: 陰道變緊

  295. Pingback: bag hook stainless steel

  296. Pingback: wholesale iphone cases

  297. Pingback: game

  298. Pingback: Gunnar Andreassen SEO

  299. Pingback: ludo star hack apk download

  300. Pingback: porn sites

  301. Pingback: porno

  302. Pingback: buy instagram porn

  303. Pingback: walmartone

  304. Pingback: vakantiepark hapimag winterberg

  305. Pingback: Live Video Chat With Santa Claus

  306. Pingback: poker

  307. Pingback: bitcoin

  308. Pingback: gynexol

  309. Pingback:

  310. Pingback: free porn sites

  311. Pingback:

  312. Pingback: Fucking tips for under 16 years

  313. Pingback: homemade porn

  314. Pingback: homemade porn sites

  315. Pingback: amateur porn sites

  316. Pingback: پنجره

  317. Pingback: shemale porn

  318. Pingback: Jogos Kizi

  319. Pingback: homemade porn sites

  320. Pingback: thanks for buying porn online

  321. Pingback: australia

  322. Pingback: anxiety help

  323. Pingback: get rich

  324. Pingback: walmartone

  325. Pingback: bridesmaid dresses toronto

  326. Pingback: covers accessories

  327. Pingback: walmart1

  328. Pingback: explanation

  329. Pingback: check over here

  330. Pingback: discover this info here

  331. Pingback: like this

  332. Pingback: Concealed Carry Permit

  333. Pingback: more helpful hints

  334. Pingback: more helpful hints

  335. Pingback: fake gucci belt

  336. Pingback: excel guide

  337. Pingback: excel

  338. Pingback: video excel

  339. Pingback: cheap diaper

  340. Pingback: video excel

  341. Pingback: skin lightening

  342. Pingback: Darwin Horan

  343. Pingback:

  344. Pingback: bridesmaid dresses toronto

  345. Pingback:

  346. Pingback: grind and brew coffee maker

  347. Pingback: My Homepage

  348. Pingback: Vancouver BC Airport Shuttle

  349. Pingback: wordpress

  350. Pingback: vermiculite

  351. Pingback:

  352. Pingback: headphones

  353. Pingback: drone-works

  354. Pingback: Clicking Here

  355. Pingback: eget casino

  356. Pingback:

  357. Pingback: Removal

  358. Pingback: big farm mobile harvest hack

  359. Pingback: typing

  360. Pingback: Singapore Flower Delivery

  361. Pingback: licensed moneylender

  362. Pingback: licensed moneylender

  363. Pingback: secrets of million dollar graphic designers

  364. Pingback: תשמישי קשודה בלוד

  365. Pingback: hemp oil for skin

  366. Pingback: בדיקת תפילין

  367. Pingback: hemp side effects

  368. Pingback: טליתות בלוד

  369. Pingback: coupon code

  370. Pingback:

  371. Pingback: Limo Services Vancouver BC

  372. Pingback: mobil porn

  373. Pingback: Auto insurance by zip code

  374. Pingback: free xbox live codes

  375. Pingback: pewność siebie

  376. Pingback: jake burgess

  377. Pingback: progressive insurance

  378. Pingback: the hartford claims

  379. Pingback: usaa homeowners insurance

  380. Pingback: allstate log in

  381. Pingback: Geico

  382. Pingback: Los Angeles Escorts

  383. Pingback: شهرزاد

  384. Pingback: xyz 軟體補給站

  385. Pingback: vegas strip

  386. Pingback: Longchamp Outlet Sale

  387. Pingback: truth mogul

  388. Pingback: Recycle tech

  389. Pingback: mp3

  390. Pingback: Pop Beats for Sale

  391. Pingback: online loans fast cash

Leave a Reply

Scroll To Top