Freddie Mac’s latest risk-share structures are another experiment with mortgage credit risk mitigation above and beyond private MI. MI is still required at the loan level under the GSEs’ charters (unless, of course, they can figure out other charter-eligible loan-level credit enhancements). At the pool level, not so much and, if the pool level prices out in a way that makes MI seemingly solely an added cost, maybe not so much also at the loan level in future GSE transactions.

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