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Credit Risk Transfer Progress Report

Credit Risk Transfer Progress Report 4Q2021

Published: 5/2/2022

​​​​​​​The Report provides a comprehensive picture of how Fannie Mae and Freddie Mac (the Enterprises) transfer a substantial portion of credit risk to the private sector through a variety of transactions in both the single-family and multifamily markets.

In 2021, the Enterprises collectively achieved the highest level of single-family CRT issuance volume since the inception of the CRT programs. The Enterprises transferred a portion of credit risk on $1.1 trillion of unpaid principal balance (UPB) in 2021, an increase of $404 billion or 62 percent from 2020. The record level of annual single-family CRT issuances was influenced by the significant amount of mortgage refinance activity in 2020 and 2021, primarily as a result of historically low average mortgage rates.

The single-family CRT activity at Fannie Mae was lower than Freddie Mac in 2021, as Fannie Mae did not re-enter the CRT market until the fourth quarter of 2021.

From 2013 through the end of 2021, the Enterprises transferred risk on approximately $5.2 trillion of UPB, with a total Risk in Force (RIF) of $162 billion, or 3.1 percent of UPB. Securities issuances (CAS and STACR) accounted for 67 percent of total RIF of CRT issuances.

In 2021, the Enterprises transferred risk on $1.1 trillion of UPB with a total RIF of $25 billion. Securities issuances accounted for 57 percent of RIF, and reinsurance transactions accounted for 43 percent of RIF.

See the document below for more detailed information.



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