Will the GSEs Repeat 2007 - 2009’s Large Losses?
The Stoop (NYU Furman Center)
NOVEMBER 7, 2022
The GSEs now engage in extensive credit risk transfer (CRT) transactions, whereby institutional investors take on portions of their single-family mortgage credit risk. 12] This is not a level considered “adequately capitalized” by the regulators. These reforms also include major changes to how the GSEs do their business.
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