Tag Archives: Credit Risk Transfer

Freddie Mac has obtained three new insurance policies under its Agency Credit Insurance Structure (ACIS) program, representing the largest aggregate transaction to date, and a new milestone reached.

Freddie Mac has been evolving its risk management framework and practices since it debuted its first official credit risk transfer program in 2009, and they just recently reached a milestone.

With the first 21 offerings, Freddie Mac’s STACR issuances to date covered 29.38 percent of the agency’s total book of business.

While the conservatorships continue, so do the Enterprise’s initiatives to ease the risk for taxpayers by further involving investors in the private capital market.

To date, Fannie Mae's CAS program has resulted in the transfer of credit risk on single-family loans totaling more than a half trillion dollars. What enhancements did Fannie Mae make to the program?

FHFA's conservatorship scorecard called for Fannie Mae and Freddie Mac to lay off a certain amount of risk on single-family mortgages in 2015. Exactly how much credit risk did they transfer?

How much credit risk did Fannie Mae and Freddie Mac offload with their respective transactions announced this week?

The GSEs began their risk-sharing initiatives in 2013 as a way to transfer risk from taxpayers to private investors while the Enterprises remain in conservatorship of the FHFA. Since then, the GSEs have transferred a substantial portion of the credit risk for mortgages totaling hundreds of billions of dollars in unpaid principal balance (UPB).

The GSE continues to transfer credit risk away from taxpayers to private investors and expand its investor base.

Two and a half years after launching the first credit risk transfer program, Freddie Mac has succeeded in the transferring of a substantial portion of credit risk on more than $385 billion in single-family mortgages.