“The credit ratings on these notes reflect the strong performance to date of the loans and the structural features that reduce credit risk to investors over time,” said Grant Bailey, managing director, Fitch Ratings.
Fitch Ratings has assigned ratings to the following Connecticut Avenue Securities notes:
CAS 2013-C01 Class M-2 notes – Rating: BB+sf, outlook stable
CAS 2014-C01 Class M-2 notes – Rating: BBsf, outlook stable
CAS 2014-C02 Class 1M-2 notes – Rating: BBsf, outlook stable
CAS 2014-C02 Class 2M-2 notes – Rating: BB+sf, outlook stable
CAS 2014-C03 Class 1M-2 notes – Rating: B+sf, outlook stable
CAS 2014-C03 Class 2M-2 notes – Rating: BB+sf, outlook stable
CAS 2015-C01 Class 1M-2 notes – Rating: B+sf, outlook stable
CAS 2015-C01 Class 2M-2 notes – Rating: BBsf, outlook stable
As of August 2, 2016, Fannie Mae has brought 14 CAS deals to market since the program began, issued $18.1 billion in notes, and transferred a portion of the credit risk to private investors on single-family mortgage loans with an outstanding unpaid principal balance of approximately $621.5 billion pursuant to CAS transactions. Fannie Mae has transferred a portion of the credit risk on approximately $741.8 billion in single-family mortgages through all of its risk transfer programs.
Fannie Mae is the leading manager of single-family residential credit risk in the industry and continues to drive innovation in the space through the development and employment of its proprietary underwriting and quality control tools, which are unique to the industry. Tools such as Desktop Underwriter® and Collateral Underwriter™ give Fannie Mae the ability to further manage loan quality through the delivery process and increase transparency to enable parties to evaluate risk early in the loan origination process.
In addition to its flagship CAS program, Fannie Mae continues to reduce risk to taxpayers through its Credit Insurance Risk Transfer™ (CIRT™) reinsurance program and other forms of risk transfer.
To view the full Fitch Ratings’ release, visit https://www.fitchratings.com/site/pr/1010974.
About Connecticut Avenue Securities
CAS notes are bonds issued by Fannie Mae. 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 individual CAS transactions and Fannie Mae’s approach to credit risk transfer, visit http://www.fanniemae.com/portal/funding-the-market/credit-risk/index.html. To view the periods in 2016 during which Fannie Mae may issue Connecticut Avenue Securities (CAS), please view our 2016 CAS Issuance Calendar.
Statements in this release regarding the company’s future CAS transactions are forward-looking. Actual results may be materially different as a result of market conditions or other factors listed in “Risk Factors” or “Forward-Looking Statements” in the company’s annual report on Form 10-K for the year ended December 31, 2015 and its quarterly report on Form 10-Q for the quarter ended June 30, 2016. This release does not constitute an offer or sale of any security. Before investing in any Fannie Mae issued security, potential investors should review the disclosure for such security and consult their own investment advisors.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fannie-mae-connecticut-avenue-securities-receives-additional-fitch-ratings-300320055.html
SOURCE Fannie Mae