Freddie Mac’s Single-Family business recently said that its Credit Risk Transfer (CRT) program transferred credit risk via $4.8 billion of issuance on $167.2 billion of single-family mortgages from U.S. taxpayers to the private sector in the fourth quarter of 2020.

Fannie Mae, regarding Single-Family sellers and the impact of COVID-19 on appraisals, updated its Lender Letter (LL-2021-04), which contains the policies previously published in LL-2020-04 on Dec. 10, 2020. The update is the extension of application dates eligible for certain temporary flexibilities to April 30.

The temporary policies related to condominium project reviews and borrower-provided photos for completion draws for HomeStyle Renovation loans, which will not be extended beyond Apr. 30, 2021.

We are continuing to collaborate with FHFA and Freddie Mac and will update and republish this Lender Letter as necessary,” Fannie Mae states.

As to the Freddie Mac news, the issuance included Structured Agency Credit Risk (STACR), Agency Credit Insurance Structure (ACIS), subordination and certain lender risk sharing transactions. In 2020, the company transferred risk via $16.9 billion of issuances on more than $475.8 billion of mortgages.

“Despite a challenging environment, Freddie Mac’s Single-Family CRT program closed out its biggest year ever in 2020,” Freddie Mac Vice President of Single-Family CRT Mike Reynolds said in a release. “Our effectiveness in managing risk and tailoring transactions to investor needs and market conditions, together with our ongoing commitment to leadership in this asset class, helped drive demand for our CRT products.”

Through its flagship offerings, Freddie Mac issued approximately $4.2 billion across three STACR and four ACIS transactions in the fourth quarter. Among the notable transactions was the STACR REMIC 2020-DNA5 offering, Freddie Mac’s first single-family CRT offering tied to the Secured Overnight Financing Rate (SOFR), the GSE said.

Another was ACIS 2020-SAP1, a stand-alone ACIS contract featuring 15- to 20-year collateral rather than the typical 20- to 30-year collateral.

Since the first CRT transaction in 2013, Freddie Mac’s Single-Family CRT program has cumulatively transferred $67.6 billion in credit risk on $1.9 trillion in mortgages through STACR, ACIS, certain senior subordination securitization structures and certain lender risk sharing transactions. As of Dec. 31, 2020, 51 percent of the single-family credit guarantee portfolio was covered by credit enhancement.

Freddie Mac’s Single-Family CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies.

“We founded the GSE Single-Family CRT market when we issued our first STACR notes in July 2013. In November 2013, we introduced our ACIS program,” Freddie Mac said. “Today, CRT serves as the primary source of private capital investment in residential mortgage credit.”