Today, U.S. Representative Mike Flood of Nebraska and U.S. Senator Mike Rounds of South Dakota sent a letter to the Federal Housing Finance Agency (FHFA) Director William Pulte. The letter commended his work on credit risk transfer (CRT) programs at Fannie Mae and Freddie Mac and encouraged further reforms to enhance these programs’ impact on the housing finance system.
“President Trump has directed federal agencies to lower housing costs and expand supply—goals that align directly with an improved Enterprise CRT program,” the letter states. It continues, “As you chart FHFA’s course, we encourage you to support policies that leverage private capital and market discipline to promote safety, soundness, and liquidity through all economic cycles.”
CRT programs are essential for managing risk and ensuring stability through economic cycles. Since 2013, FHFA has promoted CRT programs, encouraging private-sector innovation in risk analysis. Between 2013 and 2023, $210 billion in credit risk was transferred on $6.7 trillion in single-family mortgage balances.
Congressman Flood is Chairman of the House Financial Services Subcommittee on Housing and Insurance and a member of several other financial committees.
