Capacity for Risk Sharing with MI

Ample Capacity and Opportunity for Greater Risk Sharing with MI

Since 2012, the GSEs have purchased over $3 trillion in mortgage loans.  About 25 percent of those loans, or roughly $838 billion, have been included in the GSEs’ expanded credit risk sharing transactions (CRT).  Only about 4 percent ($30.6 billion) of the unpaid principal balance of the loans included in CRT has been transferred—using virtually all back-end transactions.  That represents less than 1 percent of the GSEs’ overall risk.

Risk Sharing Has Transferred Less than 1% of Risk

Pie-Chart-Credit-risk

Today, mortgage insurers are more resilient and reliable counterparties, dedicated to providing access to housing finance credit in good and bad economic times.  The time is right to move forward to expand front-end risk sharing with MI, and USMI members are ready to do more. For more details on how front-end risk sharing can help make housing finance more sustainable and affordable, click here.

 

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