To require covered agencies to issue strategy and implementation plans for the transfer of credit, guarantee, and insurance risk to the private sector, to require the implementation of such plans, and for other purposes.

Bill 118 hr 9040, also known as the "Credit Risk Transfer Act of 2021," aims to require certain government agencies to develop and implement plans for transferring credit, guarantee, and insurance risk to the private sector. The bill mandates that covered agencies, such as the Department of Housing and Urban Development and the Federal Housing Finance Agency, must create strategy and implementation plans for this transfer of risk.

The purpose of this legislation is to reduce the exposure of the federal government to financial risks associated with credit, guarantee, and insurance programs. By shifting some of these risks to the private sector, the bill seeks to promote greater efficiency and stability in the financial system.

In addition to requiring the development of these plans, the bill also mandates that covered agencies must implement the strategies outlined in the plans. This ensures that the risk transfer process is carried out effectively and in a timely manner. Overall, the Credit Risk Transfer Act of 2021 aims to enhance the financial resilience of the government and promote a more sustainable and efficient financial system by transferring certain risks to the private sector.