Washington Report

Advocacy Updates from Washington D.C.

FHFA Releases Credit Risk Sharing Report

On June 29, 2016, The Federal Housing Finance Agency (FHFA) released its latest progress report and Request for Input (RFI) on Fannie Mae and Freddie Mac's (the government-sponsored enterprises, or "GSEs") single-family credit risk transfer programs. The progress report provides an overview of how the GSE's share credit risk with the private sector, the types of transactions they have engaged in, including through primary mortgage insurance, and information on the cost of the GSE's credit risk transfer programs in terms of guarantee fee concessions. FHFA also issued a RFI along with the report to gather feedback on the credit risk transfer programs while adhering to the credit risk transfer principles.  The key to credit risk sharing will be the ability for the GSE's to continue to provide broad mortgage credit availability while bringing in more private capital investment to the secondary mortgage market.

FHFA Credit Risk Transfer Report

FHFA Credit Risk Transfer Request for Input