Washington, D.C. – The Federal Housing Finance Agency (FHFA) today issued its semi-annual Credit Risk Transfer Progress Report describing the status and volume of credit risk transfer (CRT) transactions through the fourth quarter of 2018.  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. 

As detailed in the report, in 2018 both Enterprises addressed the accounting timing mismatch associated with direct debt issuance – Freddie Mac through execution of STACR trust transactions and Fannie Mae through a new CAS REMIC structure.

Since the start of the CRT programs in 2013 through the end of June 2018, the Enterprises have transferred a portion of credit risk on approximately $2.8 trillion of unpaid principal balance (UPB) with a combined Risk in Force (RIF) of about $91 billion.  An additional $1.2 trillion of UPB credit risk has been transferred to primary mortgage insurers during the same period. 

The Progress Report shows that, in 2018:  

• The Enterprises transferred risk on approximately $643 billon of UPB with a total RIF of $22 billion.  Securities issuances, like Structured Agency Credit Risk (STACR) and Connecticut Avenue Securities (CAS), accounted for 64 percent of RIF. 
• Fannie Mae transferred risk on $332 billion of UPB, with a total RIF of $11.1 billion.
• Freddie Mac transferred risk on $311 billion of UPB with a total RIF of $11.1 billion.

“The CRT program has fundamentally changed the way the Enterprises handle risk," said Acting Director Joseph Otting. “Going forward we will continue to look for ways that CRT can further reduce both Enterprise and taxpayer risk."

Progress Report (Link to 2018 Q4 report)

Credit Risk Transfer webpage