Credit risk transfers

GSE investors better beware underlying risks


The FHFA’s attempt to move some of its balance sheet into the private sector could leave investors with greater liabilities than they were initially told.


FHFA’s focus in reforming GSEs: Capital, capital, capital


A risk-based capital rule for Fannie Mae and Freddie Mac is expected to top the agenda in 2020 as the companies’ regulator executes plans for their release into the private sector.


FHFA asks Congress for power to charter Fannie, Freddie competitors


Director Mark Calabria urged lawmakers to grant the agency chartering authority similar to that of bank regulators to boost competition in the mortgage market.


How Freddie Mac's preparing for day it might enter private sector


When the mortgage giant will be released from government control is anyone's guess, but the company's third-quarter report shows signs of an easier transition.


Freddie's 'boring' 2Q earnings a sign of stability: CEO


Freddie Mac produced modest second-quarter results, reflecting a stabilizing business that CEO Donald Layton compared to a utility company.


Fannie's take on paying for PMI seeks to avoid 'charter creep' criticism


A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns that it's going outside the scope of its secondary market mission. But the effort reflects its mandate to explore new credit-risk transfer alternatives, a company executive said.


Fannie Mae rebuilds capital cushion with enough left to pay dividend


Fannie Mae's first-quarter profits were enough for it to rebuild its minimum capital buffer and pay the Treasury Department dividend after being forced to take a draw during the previous fiscal period.


Freddie Mac's risk-sharing success may help lower G-fees


If Freddie Mac's credit-risk transfer activities continue to grow, mortgage lenders could eventually see a reduction in the guarantee fees they pay to the government-sponsored enterprise, according to CEO Donald Layton.


Fannie Mae's delinquency rate returns to high last seen in March


Fannie Mae's serious delinquency rate climbed to a high not seen since March 2017, but remained lower than it was 12 months prior.


One part of GSE reform is already working


Credit risk transfers have emerged as more than just a method for mitigating taxpayer exposure. They could be a key component of comprehensive housing finance reform.