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  • Comment Detail

  • Date: 10/21/21
    First Name: Geewu
    Last Name: Chen
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: RIN-2590-AB17

  • Comment

    Dear acting director Thompson,

    I am having a bit of a difficult time understanding how CRTs are beneficial. According to the information out in the public it transfers risk away from the GSEs and unto the private sector... But I just want to make sure that I recall how the great financial crisis unfolded. It was the private sector that failed first, then the GSEs had to step in to bail them out, and then the US GOVT had to bail the GSEs out.

    Is that not correct? With the way the CRTs are structured, it seems like the GSEs would fail first and then the private sector steps in afterwards... Does that not seem backwards?