Credit Risk Transfer (CRT) Vice President, Mike Reynolds, provides updates on the U.S. housing market, delinquency and forbearance trends and CRT performance during the second quarterly webcast of 2021. Vice President of CRT Capital Markets, Christian Valencia, joins Mike to provide insight into secondary market performance. Highlights Include:

Macro Environment Overview 

  • The U.S. economy is operating at 93% of where it was in early March of 2020 – a rapid recovery compared to the Great Recession.
  • House price appreciation is the highest on record and continues to be strong.
  • Forbearance rates are on the decline with Freddie Mac having the lowest share of mortgages in forbearance.

CRT Program and Performance Update

  • CRT is continuing to perform well, and delinquency rates are trending down—no transactions have more than 2 bps of loss.
  • An analysis between ACE and non-ACE CRT performance shows the performance difference is marginal if any when comparing the two.
  • We continue to enhance Clarity with deal compare, cumulative performance characteristics and CRT deal participation by investor type and unique investors.

Secondary Market Performance 

  • The CRT Market has grown into a robust market over the last eight years, maintaining diverse participation critical to the liquidity of the program.
  • Secondary trading spreads have tightened some, especially within the M-2 class.
  • Trading volumes averaged around $2.4 billion for 2020 and have picked up in 2021 along with our market share.



Freddie Mac Single-Family July 2021 CRT Quarterly Update



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