FANNIE MAE - FNMA STOCK NEWS

Fannie Mae (OTCQB: FNMA) has priced its Connecticut Avenue Securities (CAS) Series 2022-R07, a note offering of approximately $866 million. This marks the seventh CAS REMIC transaction in 2022, aimed at sharing credit risk from its single-family mortgage portfolio. The reference pool consists of about 101,000 mortgage loans totaling $30.6 billion in unpaid principal. Fannie Mae retains portions of specific tranches, indicating commitment to managing risk. Since inception, Fannie Mae has completed 51 CAS deals, issuing nearly $58 billion in notes and transferring risk on over $1.9 trillion in loans.

On June 24, 2022, Fannie Mae commenced fixed-price cash tender offers for the purchase of Connecticut Avenue Securities^® (CAS) Debt Notes. The offers will expire on June 30, 2022, at 5 PM New York City time. Notable securities include Series 2016-C05, with an original principal balance of $713.3 million and a tender consideration of $1,042.50 per $1,000 principal. Total principal across all offerings is $4.67 billion. Holders must tender their notes before the expiration for eligibility. Settlement is expected on July 5, 2022.

Fannie Mae's June 2022 Economic Outlook indicates that elevated inflation and higher interest rates will negatively impact economic growth and home sales. The projected growth for 2022 is now at 1.2%, with a potential modest recession anticipated in late 2023. Home sales are forecasted to decline by 13.5% this year, and mortgage originations are expected to drop to $2.6 trillion in 2022 and $2.2 trillion in 2023. The report highlights the significant rise in mortgage rates as a primary constraint on the housing market, leading to reduced refinance activity.

Fannie Mae has launched the Refinance Application-Level Index (RALI), a weekly tool for tracking refinance activities and trends in near real-time. Utilizing data from the Desktop Underwriter®, the RALI aims to enhance transparency for lenders and investors, aiding in accurate modeling of refinance behavior. For the week ending June 10, 2022, dollar volume of refinance applications rose by 17.9% week-over-week, though it remains down 69.5% year-over-year. The RALI delivers two main metrics: unpaid principal balance and loan count, contributing to improved prepayment projections.

Fannie Mae (OTCQB: FNMA) announced its sixth Credit Insurance Risk Transfer™ (CIRT™) transaction for 2022, transferring $725 million of mortgage credit risk to private insurers. This move aims to reduce taxpayer risk and enhance private capital in the mortgage market. Since the program's inception, Fannie Mae has secured approximately $19.9 billion in insurance coverage on $675.9 billion of loans. The transaction includes a pool of about 63,000 single-family loans with an outstanding balance of $19.3 billion. Fannie Mae retains risk for the first 55 basis points of loss on this pool.

Fannie Mae (OTCQB: FNMA) announced the launch of its twenty-sixth sale of reperforming loans, comprising approximately 9,980 loans with an unpaid principal balance of $1.57 billion. This initiative aims to reduce its retained mortgage portfolio. The sale, in collaboration with Citigroup Global Markets, expects bids by July 7, 2022. Buyers must honor existing loss mitigation efforts for borrowers, offering options such as loan modifications to prevent foreclosure. This move demonstrates Fannie Mae's commitment to maintaining market stability and supporting mortgage affordability.

Fannie Mae introduced its three-year Equitable Housing Finance Plan aimed at dismantling barriers for Black renters and homeowners. This initiative focuses on three areas: Housing Preparation through credit building, Buying or Renting by removing obstacles, and Moving in and Maintaining to ensure sustainable homeownership. The Plan is part of a broader strategy to promote equitable access to affordable housing and will eventually extend to other underserved groups. Implementation has already begun with various educational and support programs.