Watt Said FHFA Evaluating, Exploring New CRT Options
November 3, 2017
Federal Housing Finance Agency Director Mel Watt touted the evolution of the GSEs’ credit-risk transfer programs and said they continue to make progress on exploring new types of ways to transfer risk to the private sector.During remarks at the Mortgage Bankers Association’s annual conference in Denver last week, Watt said Fannie Mae and Freddie Mac now transfer a significant amount of credit risk on at least 90 percent of their targeted single-family loans. “The enterprises’ credit-risk transfer programs have leveraged a receptive private sector market and have made an incredible amount of progress in a really short period of time,” he said. Since 2013, they have transferred a portion of credit risk on $1.6 trillion of mortgages.