Credit Risk Transfer Progress Report 2Q2017

From the beginning of the Enterprises’ Single‐Family CRT programs in 2013 through June 2017, Fannie Mae and Freddie Mac have transferred a portion of credit risk on $1.8 trillion of unpaid principal balance (UPB), with a combined Risk in Force (RIF) of about $60.6 billion, or 3.3 percent of UPB.  An additional $837 billion of UPB and $212 billion of RIF has been transferred to primary mortgage insurers from 2013 through 2Q17.  Through CRT and mortgage insurance, the majority of the underlying mortgage credit risk on mortgages targeted for CRT has been transferred to private investors.

In the second quarter of 2017, the Enterprises transferred risk on $213 billon of UPB with a total RIF of $6.4 billion.  Debt issuances accounted for 70 percent of RIF, reinsurance transactions accounted for 25 percent of RIF, and lender risk sharing accounted for 5 percent of RIF.

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