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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 337
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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 328
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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. Freddie Mac’s CRT program was founded with its issuance of the first STACR notes in July 2013. It was introduced in November 2013.

Insurance 363
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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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FHFA: Fannie & Freddie Credit Risk Transfers “untested”

Housing Wire

Despite heightened investor uncertainty during the onset of the pandemic, GSE-backed mortgages have outperformed expectations, the report notes. Freddie Mac implemented the CRT structure in 2013 to reduce the taxpayer’s exposure to its mortgage risks, shifting the risk of credit losses on the mortgages they insure onto investors.

Investors 341
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FHA proposes updates to reverse mortgage debenture interest rates

Housing Wire

Debenture interest refers to the percentage of a return that an investor would receive for lending money through a debenture. These proposals build upon several changes FHA made to the HECM program on Jan. 19, 2017, which went into effect later that year.

Mortgage 353
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Northpointe Bank to shutter its correspondent lending business

Housing Wire

Northpointe, a private depository institution insured by the Federal Deposit Insurance Corporation (FDIC), was established in 1999 with a focus on residential mortgage loan origination and servicing. Northpointe became an approved seller and servicer for Freddie Mac in 2013, Fannie Mae in 2014 and Ginnie Mae in 2016.

Lending 378