Remove 2013 Remove Insurance Remove Investors Remove Marketing
article thumbnail

Fannie Mae finalizes two additional credit insurance risk transfers

Housing Wire

On the heels of completing its first credit insurance risk transfer (CIRT) deal of the year in early March, Fannie Mae has announced that it has executed two additional CIRT deals. . billion of mortgage credit risk to private insurers and reinsurers. “We The newest deals, CIRT 2022-2 and CIRT 2022-3, together transferred $1.8

Insurance 325
article thumbnail

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. What is the capital reserve ratio? Just look at HUD’s own data on FHA lending: 1.

Insurance 385
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

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
article thumbnail

Freddie Mac opens 2022 with two large CRT offerings

Housing Wire

Through Freddie Mac’s STACR CRT transactions, private investors participate with the agency in sharing a portion of the mortgage credit risk in the reference loan pools retained by the GSE. The Decision Tree That Is The MBS Market. Freddie Mac’s CRT program was founded with its issuance of the first STACR notes in July 2013.

Insurance 336
article thumbnail

Fannie Mae to restart credit risk transfers

Housing Wire

The company said it expects to transfer mortgage credit risk via its Connecticut Avenue Securities and Credit Insurance Risk Transfer programs. The CRT structure, which Freddie Mac pioneered in 2013, shifts a portion of the risk of credit losses on the mortgages they back onto investors. The GSEs keep the riskiest tranche.

Investors 412
article thumbnail

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
article thumbnail

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