Fannie Mae Announces 2024 Connecticut Avenue Securities (CAS) Issuance Calendar

Rhea-AI Summary

Fannie Mae (FNMA) Announces 2024 CAS Issuance Calendar, Expects $4 Billion Volume

Positive

• Fannie Mae plans to issue 5-7 CAS deals in 2024, totaling around $4 billion, reflecting reduced single-family mortgage loan acquisitions in 2023.
• The company has been transparent in its efforts, transferring credit risk on single-family mortgages worth $3.3 trillion since 2013 through CRT, CAS, CIRT, and other risk transfer methods.

Negative

• None.

WASHINGTON, Dec. 13, 2023 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced today its 2024 Connecticut Avenue Securities^® (CAS) Issuance Calendar as part of its efforts to ensure transparency in the market. Fannie Mae has the option to issue, or forgo issuance of, one or more CAS deals during each window. The company does not plan to issue additional credit risk transfer (CRT) transactions in 2023.

"Fannie Mae will be dynamic in its strategic approach to CRT issuance in 2024. We currently expect total CAS volume of around $4 billion across 5-7 transactions, reflecting reduced single-family mortgage loan acquisitions in 2023," said Kathleen Pagliaro, Vice President of Credit Risk Transfer, Fannie Mae. "We expect to return to market in mid-to-late January, with CAS 2024-R01, a low-LTV transaction. Volumes and decisions to utilize or forgo available windows continue to be dependent on market conditions and other factors."

Since 2013, Fannie Mae has transferred a portion of the credit risk on single-family mortgages with an unpaid principal balance of approximately $3.3 trillion through its CRT efforts, including CAS, Credit Insurance Risk Transfer^™ (CIRT^™), and other forms of risk transfer.

About Connecticut Avenue Securities:
CAS REMIC notes are issued by a bankruptcy-remote trust. The amount of periodic principal and ultimate principal paid by Fannie Mae is determined by the performance of a large and diverse reference pool. For more information on our approach to credit risk management, individual CAS transactions, and EU and UK investor resources, visit our website.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit: 
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

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Fannie Mae Resource Center
1-800-2FANNIE (800-232-6643)

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SOURCE Fannie Mae

FAQ

What did Fannie Mae announce regarding its 2024 CAS Issuance Calendar?

Fannie Mae announced its 2024 CAS Issuance Calendar, planning to issue 5-7 CAS deals totaling around $4 billion in 2024.

What is the total unpaid principal balance of single-family mortgages Fannie Mae has transferred credit risk for through its CRT efforts?

Fannie Mae has transferred credit risk for single-family mortgages with an unpaid principal balance of approximately $3.3 trillion since 2013.

What is the role of Kathleen Pagliaro in Fannie Mae's credit risk transfer efforts?

Kathleen Pagliaro is the Vice President of Credit Risk Transfer at Fannie Mae and mentioned the company's dynamic strategic approach to CRT issuance in 2024.

What are the different forms of risk transfer used by Fannie Mae?

Fannie Mae uses CAS, CIRT, and other risk transfer methods to transfer credit risk on single-family mortgages.