Credit Risk Transfers Win Bipartisan Support in U.S. Congress

Credit Risk Transfers, or CRTs, allow banks and government-sponsored enterprises to shift some loan-default losses to private capital through securities, insurance and reinsurance. Fannie Mae and Freddie Mac have operated such programs since 2013 to prevent housing-market stress from falling directly on taxpayers and to reduce concentrated risk in the financial system.

The Housing and Insurance Subcommittee of the U.S. House Financial Services Committee held a hearing on April 22, 2026, where Republicans and Democrats endorsed CRTs and reinsurance. FHFA data showed that the two enterprises transferred $11.3 billion of risk in force on $343 billion of single-family mortgages in 2025. Since 2013, the programs have covered $7.4 trillion in loans and transferred $233 billion of risk in force.