GSEs Finish Credit Risk Sharing for 2015 on a Strong Note

first_img Previous: SingleSource Property Solutions Merges With iMortgage Services Next: Seasonal Slowdown Keeps Homes at an Affordable Level The Best Markets For Residential Property Investors 2 days ago GSEs Finish Credit Risk Sharing for 2015 on a Strong Note Tagged with: CIRT Credit Insurance Risk Transfer Credit Risk Sharing Fannie Mae Freddie Mac December 21, 2015 1,405 Views Sign up for DS News Daily With no end to the FHFA’s conservatorships of the GSEs in sight after more than seven years, Fannie Mae and Freddie Mac are both heavily engaged in transferring credit risk on single-family mortgage loans to the private sector in order to remove some of the risk for taxpayers.Both GSEs have announced the completion of their final risk transaction of 2015 as of late last week, and the FHFA said last week in the GSEs’ scorecard for 2016 that the Enterprises plan to transfer credit risk on at least 90 percent of the unpaid principal balance (UPB) of newly-acquired single-family mortgages in loan categories targeted for risk transfer.Fannie Mae’s final credit risk transfer deal of 2015, known as CIRT 2015-6 (Credit Insurance Risk Transfer), is unique from previous CIRT transactions because the loan pool covered includes 5/1, 7/1 and 10/1 fixed period adjustable rate mortgages (ARMs), which allows Fannie Mae to offer a new investment opportunity to reinsurers. Through six CIRT transactions since the program’s inception in 2014, Fannie Mae has acquired more than $1.2 billion of coverage on more than $46 billion of loans. More than $1 billion of that CIRT insurance acquired by Fannie Mae on more than $40 billion in loans has occurred in 2015.“Fannie Mae remains focused on advancing and driving strong interest and results for our credit risk transfer programs that help shift risk away from the company and to holders of private capital, reduce taxpayer risk and help create a safer, stronger housing finance system,” said Rob Schaefer, VP for credit enhancement strategy & management. “With our final CIRT deal of 2015, we continued to find ways to interest reinsurers with access to varied loan collateral by introducing ARM loans to our transactions. Insurers and reinsurers tell us that they value our commitment to engage their industry through our CIRT program, and the unique, customized risk opportunities that CIRT can offer, helping insurers and reinsurers to expand their risk portfolio.”CIRT 2015-6 became effective on November 1, 2015; on this transaction, Fannie Mae retains the risk for the first 50 basis points of loss on an $8.2 billion pool of loans, according to the GSE.Another of Fannie Mae’s innovative credit risk transfer programs, Connecticut Avenue Securities (CAS), has sold more than $12.4 billion in securities to private investors, which covers $438 billion worth of mortgage loans since the program’s inception in September 2013. CIRT Credit Insurance Risk Transfer Credit Risk Sharing Fannie Mae Freddie Mac 2015-12-21 Brian Honea About Author: Brian Honea Related Articles Share Save Demand Propels Home Prices Upward 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, News, Secondary Market Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago “Fannie Mae remains focused on advancing and driving strong interest and results for our credit risk transfer programs that help shift risk away from the company and to holders of private capital, reduce taxpayer risk and help create a safer, stronger housing finance system.”Rob Schaefer, Fannie Mae VP for credit enhancement strategy & managementIn late November, Fannie Mae’s fellow GSE, Freddie Mac, announced its eighth and final credit risk sharing transaction of 2015, STACR 2015-HQA2 (Structured Agency Credit Risk). Freddie Mac’s risk-sharing initiatives include 17 STACR debt note offerings and 11 Agency Credit Insurance Structure (ACIS) transactions since becoming the first agency to market credit risk transfer transactions with STACR and ACIS in the middle of 2013. Since then, Freddie Mac has grown its investor base to more than 170 unique investors, including reinsurers. The Enterprise has laid off a substantial portion of credit risk on single-family mortgages totaling $384 billion in UPB.Both Fannie Mae and Freddie Mac have announced that their respective credit risk sharing initiatives (CIRT and CAS for Fannie Mae, STACR and ACIS for Freddie Mac) will continue in 2016 in order to allow more participation from the private sector in the U.S. housing market. Home / Daily Dose / GSEs Finish Credit Risk Sharing for 2015 on a Strong Note Subscribelast_img read more

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Return to Grace

first_imgIn the midst of a surprising undefeated football season and Notre Dame’s rise to the No. 1 spot atop the national college football polls this weekend, hopeful Irish fans continue to draw parallels between 2012 and 1988, the last time the team won a national championship. But when it comes to lighting the No. 1 sign atop Grace Hall, that parallel is not merely speculative. Design professor Robert Sedlack was a resident assistant in Grace during his senior year and the 1988 football season, and he played a crucial role in making the Irish’s No. 1 ranking known to all of campus. “It just so happened that I was an RA on the 11th floor of Grace and had the keys to the penthouse,” he said. “So lighting the sign fell on my to-do list, and I had to go up in the morning and the evening to turn it off and on each day.” Sedlack began his lighting duties after the then-No. 2 Irish jumped ahead of then-No. 1 UCLA following a 22-7 victory against Navy and the Bruins’ upset loss to Washington State. He said he and his friends began preparing to celebrate that change shortly after it happened. “Once it looked like we were going to achieve that No. 1 ranking, some buddies of mine built the sign out on the roof of Grace,” Sedlack said. They took a page out of the book of Fr. Gerry Lardner, Grace Hall’s rector at the time and a Notre Dame graduate student during the team’s 1973 championship season. The tradition of the No. 1 sign began after that season, when it was initially placed outside Moreau Seminary, University Architect Doug Marsh said. “Fr. Gerry was a great rector and we had a good group of RAs that year, so he wanted to kind of redo [the sign] and so the guys rebuilt it,” Sedlack said. But the relighting of the sign came as something of a surprise after the first three mediocre seasons Sedlack and his 1989 classmates experienced. “Our freshman year was so awful … a guy once offered my roommate $10 for a pair of tickets he tried to sell for the last game of the season,” Sedlack said. “You fast forward to senior year, and tickets for the Miami-Notre Dame game at home were going for $1,000 each.” Between his freshman and senior years, Sedlack saw receiver Tim Brown win the Heisman Trophy his junior year and leave the team somewhat in limbo when he graduated. “I think we thought we’d be OK [without Brown], but I don’t think anybody thought we’d be the best in the country,” Sedlack said. “You could make the argument that my classmates and I were at Notre Dame during the best years for Notre Dame football,” he said. “Our claim is that you can’t understand how incredible it is to win a national championship having not had a crappy freshman year.” Sedlack said he feels this year’s team has followed a similar trajectory in its long-awaited return to national prominence. “We were awful three years ago, so to suddenly have such a great team is exciting,” he said. “I’m really thrilled, most thrilled for the team.” Sedlack said he still takes pride in his former duty as an RA, bringing his wife and children to take pictures on Mod Quad, telling students about his experiences and sharing photos and emails with classmates. “I feel proud to be associated with [lighting the sign],” Sedlack said. “Grace was a fantastic dorm with a good crew of RAs, and we got along well with our rector. Not unlike this year, it was a magical season.” Marsh said the 8-foot-tall sign atop Grace now remains lit so long as any Irish sports team is ranked No. 1 in the nation. Prior to its lighting Sunday, the sign was most recently lit for the University’s fencing, women’s basketball and women’s soccer teams. The last time it was lit in honor of the football team was in 1993, when the Irish topped the Associated Press poll. Contact Kristen Durbin at [email protected]last_img read more

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