Scores on the doors

Category: Capital Relief Trades RMBS

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Significant shift in scorecard augurs increased CAS/STACR

The new 2022 GSE scorecard, released at the end of last week, is likely to mean greater issuance in the CRT sector by Fannie Mae and Freddie Mac, say market sources.

“With the 2022 FHFA scorecard focusing the GSEs on ‘promoting sustainable and equitable access to affordable housing’, while operating with a ‘heightened focus on safety and soundness’, including reducing risk to taxpayers, the need to shed more risk in aggregate dollar terms is likely,” predicts Mark Fontanilla, founder and director of Mark Fontanilla and Company, a leading CRT market data and analytics firm.

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