CRT Quarterly Webcast July 2021
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
This recording may contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company's control. Management's expectations for the company's future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.
The financial and other information contained in this recording are only as of the dates stated or shown. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.