Fannie Mae (FNMA)

[Robert from yahoo bd]

The CRT program is a $1.5B/yr (Fannie Mae only) give away to the Financial Industry. This $1.5B/yr. should be going to rebuilding Capital.

"Second, Fannie revealed that through September 30, 2023, the annual cost of its CRT programs had reached an all-time high of nearly $1.5 billion, while the lifetime expected value of its “freestanding credit enhancement receivables” had fallen to just $265 million, compared with $565 million at the end of 2022. And finally, despite a $4.7 billion increase in net worth in the third quarter, Fannie only was able to trim its capital deficit by $1.8 billion, because even with its total assets rising just 16 basis points its risk-weighted assets rose by 2.3 percent, likely caused by diminished capital credit given to its CRTs, due to the company’s taking more risk on recent issuances."