During the second quarter of 2017, Fannie Mae and Freddie Mac transferred credit risk on $12.6 billion of unpaid principal balance loans through front-end lender risk sharing, according to the Federal Housing Finance Agency’s latest credit-risk transfer progress report. While the GSEs have plans to grow front-end deals, they currently represent a small portion of the total $212.8 billion risk transferred during the second quarter. Lender risk sharing lets lenders invest directly in credit risk by retaining a portion of the credit risk on loans they originate or service. Lender risk sharing accounted for 5 percent of the GSEs’ $6.4 billion risk in force.