The Federal Housing Finance Agency is soliciting industry input on how to improve Fannie Mae and Freddie Mac's credit risk transfer transactions, for the first time considering front-end transactions rather than back-end deals.

The two government-sponsored enterprises have completed $1 trillion in credit-risk transfer sales to investors since 2012, but those pools of mortgages were closed and seasoned. Many in the industry have been pressing FHFA to offer front-end transactions, where a private mortgage insurance company or investor could bid on the credit risk of newly pooled loans. That could directly impact the pricing of loans and provide benefits to borrowers, they argue.

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