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CRT protects GSEs, taxpayers from unexpected disasters

Housing Wire

After reading the recent report from the Federal Housing Finance Agency on the performance of Fannie Mae and Freddie Mac’ s credit risk transfer programs, anyone unfamiliar with the purposes of CRT might understandably conclude that the GSEs vastly overpaid capital market investors and insurance providers to transfer credit risk off their books.

Insurance 278
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Download these 9 real estate prospecting letter templates that actually work

Housing Wire

With Wise Pelican, you can try both — it’s a fantastic resource for beautifully designed postcards and letters. If you want to think outside the box, consider partnering with an ambitious insurance agent who offers both rent and homeowners insurance. I work with many investors and want to introduce myself as a resource to you.

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Fannie Mae launches eighth CAS note offering this year

Housing Wire

Through CAS note offerings, private investors participate with Fannie in sharing a portion of the mortgage credit risk in the reference loan pools retained by the agency. Fannie Mae operates two CRT programs — its CAS note offerings and its Credit Insurance Risk Transfer , or CIRT, transactions.

Insurance 299
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Freddie Mac’s CRT program posts record performance 

Housing Wire

The offering totals were across the agency’s flagship Structured Agency Credit Risk (STACR) and Agency Credit Insurance Structure (ACIS) programs, along with other risk-sharing transactions. Through the A CIS transactions, a portion of the credit risk on mortgages backed by Fannie and Freddie is shifted to insurers in the private sector.

Insurance 370
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CRT is ‘responsible’ hedge against taxpayer risk: FHFA’s Thompson

Housing Wire

The two GSEs, or agencies, buy loans from lenders, pool them and issue mortgage-backed securities that are sold to investors and guaranteed for a fee by Fannie and Freddie. Fannie Mae has similar CRT programs, which include its Connecticut Avenue Series, or CAS, note offerings; and its Credit Insurance Risk Transfer, or CIRT, transactions.

Insurance 352
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Opinion: FHA should lower Mortgage Insurance Premium

Housing Wire

Simply put, it looks at all the insured loans in the single-family business and factors in expected interest rates, home price forecast, default rates and severity rates over the entire duration of these loans, some of which will be on the books for 30 years. They range between GNMA investor confidence to past history.

Insurance 385