More government-sponsored enterprise risk-sharing transactions are on the way to join those already issued this year by Freddie Mac, Fitch Ratings said in a report issued Monday.
According to Fitch, investor demand has been strong enough to merit more actual loss deals this year. Clean credit has helped, too. Of the borrowers present in the risk-sharing pools, only a sliver, 29 basis points, were delinquent.
Prepayment speeds in the risk-sharing pools have hovered around 10% for older loans with lower initial coupons, while more recently issued CAS and STACR transactions have recorded one-month conditional prepayment rates over 20% on average, the ratings agency said in its report.
Fannie Mae is expected to issue its first actual loss risk-sharing transaction later this year along with increased
