Washington, D.C. – The Federal Housing Finance Agency (FHFA) today issued a Credit Risk Transfer Progress Report describing the status and volume of credit risk transfer transactions through year-end 2016.  The Report gives a comprehensive picture of how Fannie Mae and Freddie Mac (the Enterprises) transfer a portion of credit risk to the private sector through a variety of transactions in both the single-family and multifamily market.

"Fannie Mae and Freddie Mac have made credit risk transfer a regular part of their business and they continue to improve and expand the scope of their programs and explore different transaction structures," said FHFA Director Melvin L. Watt.  "This report demonstrates the ongoing innovation, the progress being made, and our commitment to transparency as we continue to enhance these programs."

The report shows that in 2016 the Enterprises transferred $18 billion of credit risk on $548 billion of mortgages with an unpaid principal balance (UPB) through capital markets, insurance, and pilot credit risk transfer (CRT) transactions.  This brings the total since the program began in 2013 to almost $49 billion of credit risk transferred on $1.4 trillion UPB.

This Credit Risk Transfer Progress Report is in a new format, which provides data, definitions, and FHFA's core principles in overseeing the Enterprise CRT programs in one place. The report will be updated regularly.

Progress Report