As we noted yesterday, Freddie Mac’s 1Q earnings statement included doubts about CRT’s long-term viability.  Fannie today is less gloomy but has nonetheless shuttered back-end CRT for as long as the financial markets remain inhospitable.  We had expected both GSEs to take this prudent course, but the necessity for each to do so makes it still more clear that CRT’s future under even benign market conditions is wholly uncertain.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.