Fannie Mae Executes Final Credit Insurance Risk Transfer Transaction of 2024 on $7.9 Billion of Single-Family Loans
Fannie Mae has completed its seventh Credit Insurance Risk Transfer™ (CIRT™) transaction of 2024, transferring $338.6 million of mortgage credit risk to private insurers and reinsurers. The CIRT 2024-L4 transaction covers approximately 23,500 single-family mortgage loans with an unpaid principal balance of $7.9 billion. The deal introduces new structural enhancements, including faster coverage release for well-performing loan pools and premium obligations based on remaining coverage. Since inception, Fannie Mae has acquired $28.1 billion of insurance coverage on $935 billion of single-family loans through the CIRT program.
Fannie Mae ha concluso la sua settima transazione di Credit Insurance Risk Transfer™ (CIRT™) del 2024, trasferendo 338,6 milioni di dollari di rischio di credito ipotecario a assicuratori e riassicuratori privati. La transazione CIRT 2024-L4 copre circa 23.500 prestiti ipotecari per famiglie monofamiliari con un saldo principale non pagato di 7,9 miliardi di dollari. L'accordo introduce nuovi miglioramenti strutturali, tra cui un rilascio più rapido della copertura per pool di prestiti ben performanti e obbligazioni sul premio basate sulla copertura residua. Dalla sua creazione, Fannie Mae ha acquisito 28,1 miliardi di dollari di copertura assicurativa su 935 miliardi di dollari di prestiti per famiglie monofamiliari attraverso il programma CIRT.
Fannie Mae ha completado su séptima transacción de Credit Insurance Risk Transfer™ (CIRT™) de 2024, transfiriendo 338,6 millones de dólares de riesgo de crédito hipotecario a aseguradoras y reaseguradoras privadas. La transacción CIRT 2024-L4 cubre aproximadamente 23,500 préstamos hipotecarios unifamiliares con un saldo principal no pagado de 7,9 mil millones de dólares. El acuerdo introduce nuevas mejoras estructurales, incluido un lanzamiento de cobertura más rápido para grupos de préstamos de buen rendimiento y obligaciones de prima basadas en la cobertura restante. Desde su inicio, Fannie Mae ha adquirido 28,1 mil millones de dólares en cobertura de seguros sobre 935 mil millones de dólares de préstamos unifamiliares a través del programa CIRT.
팬니 메이는 2024년의 일곱 번째 신용 보험 위험 이전™(CIRT™) 거래를 완료하여 3억 3,860만 달러의 주택 담보 대출 신용 위험을 민간 보험사 및 재보험사에 이전했습니다. CIRT 2024-L4 거래는 23,500건의 단독 주택 담보 대출을 약 79억 달러의 미지급 원금 잔액으로 커버하고 있습니다. 이번 거래는 성과가 좋은 대출 풀에 대한 빠른 보장 해제 및 남은 보장을 기반으로 한 보험료 의무 등 새로운 구조적 개선을 도입합니다. 창립 이후, 팬니 메이는 CIRT 프로그램을 통해 281억 달러의 보험 보장을 9,350억 달러의 단독 주택 대출에 대해 취득했습니다.
Fannie Mae a complété sa septième transaction de Credit Insurance Risk Transfer™ (CIRT™) en 2024, transférant 338,6 millions de dollars de risque de crédit hypothécaire à des assureurs et réassureurs privés. La transaction CIRT 2024-L4 couvre environ 23 500 prêts hypothécaires résidentiels avec un solde principal impayé de 7,9 milliards de dollars. Cet accord introduit de nouvelles améliorations structurelles, y compris un relâchement de couverture plus rapide pour les pools de prêts performants et des obligations de primes basées sur la couverture restante. Depuis sa création, Fannie Mae a acquis 28,1 milliards de dollars de couverture d'assurance sur 935 milliards de dollars de prêts résidentiels grâce au programme CIRT.
Fannie Mae hat ihre siebte Transaktion im Rahmen des Credit Insurance Risk Transfer™ (CIRT™) für 2024 abgeschlossen und 338,6 Millionen Dollar an Hypothekenkreditrisiken an private Versicherer und Rückversicherer übertragen. Die Transaktion CIRT 2024-L4 umfasst ungefähr 23.500 Einfamilienhaus-Hypothekendarlehen mit einem ausstehenden Hauptsaldo von 7,9 Milliarden Dollar. Der Deal bringt neue strukturelle Verbesserungen mit sich, darunter eine schnellere Freigabe der Deckung für gut performende Kreditpools und Prämienverpflichtungen basierend auf der verbleibenden Deckung. Seit ihrer Gründung hat Fannie Mae 28,1 Milliarden Dollar an Versicherungsschutz über 935 Milliarden Dollar an Einfamilienhausdarlehen durch das CIRT-Programm erworben.
- Transfer of $338.6 million in mortgage credit risk to 26 insurers/reinsurers
- Enhanced CIRT structure with faster coverage release for well-performing loans
- Coverage of $7.9 billion in single-family mortgage loans
- Strong participation from insurance market with 26 insurers/reinsurers
- None.
New Enhancements Introduced to the CIRT Structure
"We appreciate the support of the 26 insurers and reinsurers that committed to write coverage on this deal, including the strong reception to the new structural enhancements that we introduced in the updated CIRT insurance policy," said Rob Schaefer, Fannie Mae Vice President, Capital Markets. Under the updated terms to the CIRT insurance policy, coverage will be released more quickly over the life of the transaction if the covered pool of loans continues to perform well. Additionally, the insurance premium obligation will be based on the amount of remaining coverage instead of the outstanding balance of the covered loan pool.
The covered loan pool for CIRT 2024-L4 consists of approximately 23,500 single-family mortgage loans with an outstanding unpaid principal balance (UPB) of approximately
With CIRT 2024-L4, which became effective September 1, 2024, Fannie Mae will retain risk for the first 170 basis points of loss on the
Coverage for this deal is provided based upon actual losses for a term of 18 years. Depending on the paydown of the insured pool and the principal amounts of insured loans that become seriously delinquent, the coverage amount may be reduced at the first month after the effective date of the policy and each month thereafter. The coverage on this deal may be canceled by Fannie Mae at any time on or after the five-year anniversary of the effective date by paying a cancellation fee.
Since inception to date, Fannie Mae has acquired approximately
To promote transparency and to help insurers and reinsurers evaluate the CIRT program, Fannie Mae provides ongoing, robust disclosure data, as well as access to news, resources, and analytics through its credit risk transfer webpages. This includes Fannie Mae's innovative Data Dynamics® tool that enables market participants to interact with and analyze both CIRT deals that are currently outstanding in the market and Fannie Mae's historical loan dataset. For more information on specific CIRT transactions, including pricing, please visit our Credit Insurance Risk Transfer webpage.
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 | X (formerly Twitter) | Facebook | LinkedIn | Instagram | YouTube | Blog
Fannie Mae Newsroom
https://www.fanniemae.com/news
Photo of Fannie Mae
https://www.fanniemae.com/resources/img/about-fm/fm-building.tif
Fannie Mae Resource Center
1-800-2FANNIE
View original content to download multimedia:https://www.prnewswire.com/news-releases/fannie-mae-executes-final-credit-insurance-risk-transfer-transaction-of-2024-on-7-9-billion-of-single-family-loans-302287316.html
SOURCE Fannie Mae
FAQ
What is the size of Fannie Mae's CIRT 2024-L4 transaction?
What are the new enhancements to Fannie Mae's CIRT structure in 2024?
How much insurance coverage has Fannie Mae (FNMA) acquired through the CIRT program since inception?
What is the term length for Fannie Mae's CIRT 2024-L4 coverage?
