The acting director of the Federal Housing Finance Agency (FHFA) told a Senate panel this morning that the agency is moving ahead with "private" risk sharing opportunities between Fannie Mae/Freddie Mac and firms outside of the government's control.

Although acting FHFA director Edward DeMarco provided no details in his written testimony, mortgage bankers familiar with the plan say it entails the GSEs selling "credit securities" of which a small portion (up to 10% of the bond amount) would be offered to investors but with non-government guarantee.

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