Fannie Mae Hits $1 Trillion Milestone for Credit Risk Sharing Transactions

Through Fannie Mae’s market-leading credit risk management capabilities, the company acts as an intermediary between lenders and investors by setting standards, providing credit risk management oversight, and maintaining stability through business cycles. By developing a suite of credit risk-sharing initiatives, the company offers opportunities for financial institutions to invest in the credit performance of its single-family book of business.  Fannie Mae provides exceptional transparency to investors through data, resources, and tools available on its website.

Fannie Mae’s credit risk sharing program has been recognized by leading industry publication, GlobalCapital, for successfully navigating the securitization market in 2016. GlobalCapital named Fannie Mae as the “Best Overall Issuer” for both single-family and multifamily products, and “Best RMBS Issuer” for the CAS program. Fannie Mae’s Connecticut Avenue Securities, Series 2016-C01, transaction was named “Best RMBS Deal of the Year” and GlobalCapital recognized Fannie Mae’s single-family loan performance dataset as “RMBS Data Provider of the Year.”

Our Connecticut Avenue Securities (CAS) program was launched in 2013 and created a new market for investing in mortgage credit risk. Fannie Mae’s CAS transactions share credit risk on a portion of newly originated, qualifying mortgage loans that are underwritten using strong credit standards and enhanced risk controls. CAS credit-linked debt notes offer ongoing, programmatic issuance and consistent structures. Multiple dealers make daily secondary markets in CAS and provide research coverage and analytical tools. Loan-level data disclosures and an extensive historical dataset are available to support deal analysis.

Fannie Mae’s Credit Insurance Risk Transfer (CIRT) program is a key risk-sharing vehicle that complements its CAS transactions. Launched in 2014, CIRT transactions transfer a portion of the credit risk on a pool of loans either directly to an insurer that retains that risk, or to an insurance provider that simultaneously transfers that risk to one or more reinsurers that are a significant and attractive source of private capital. Fannie Mae provides pricing disclosure on its website for all CIRT transactions executed to-date.

For more information on Fannie Mae’s credit risk sharing program, visit Fannie Mae’s Credit Risk Sharing website.

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 and follow us on

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SOURCE Fannie Mae

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