Structuring CRTs as REMICs Could Boost Liquidity, Says Morningstar
July 14, 2017
Making credit-risk transfers more attractive to real estate investment trusts by rebranding some of them as real estate mortgage investment conduits may be just what the market needs, according to a new report by Morningstar. The rating service said the change likely won’t have a negative impact on the credit risk and quality of those deals and could help the GSEs broaden their investor base. The proposed changes to Fannie Mae’s Connecticut Avenue Securities and Freddie Mac’s Structured Agency Credit Risk programs would allow REITs and some overseas investors to participate more broadly in the programs.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
News Tailored to Your Needs
Get Focused Coverage
Inside Mortgage Finance's newsletters break the mortgage market down so you get the news and data you need most, whether it's total industry coverage or just the news related to securitization, regulation, profits or other specific topics.