The premier credit risk transfer program for the reinsurance market
Credit Insurance Risk Transfer™ (CIRT™) deals transfer credit risk on a pool of loans to an insurance provider, which may then transfer that risk to one or more reinsurers. Learn more.
The reinsurance market is a significant and attractive source of private capital because reinsurers generally have diversified books of business that are not heavily concentrated in or highly correlated to U.S. residential mortgage risk.
Insurance benefits paid under these transactions are based on actual losses, for which credit risk investors have expressed a preference. Additionally, these transactions complement Fannie Mae's other current risk sharing offerings that leverage the capital markets, mortgage insurance, or lender risk-sharing structures.
Fannie Mae offers both post-acquisition and front-end CIRT transactions. Post-acquisition transactions transfer a portion of credit risk on loans Fannie Mae has already acquired, while front-end transactions commit coverage for loans to be acquired over a forward delivery period. Coverage for front-end transactions begins as soon as those loans are acquired by Fannie Mae, eliminating aggregation risk.
CIRT is designed to be flexible and can cover various loan types acquired by Fannie Mae. While most transactions cover collateral pools similar to the 30-year fixed-rate pools covered by Connecticut Avenue Securities® (CAS), pools of adjustable-rate mortgages and 15/20-year fixed rate mortgages have been covered on a periodic basis.
A transparent program
Key deal documents and transaction data are readily available on our webpages.
- At-issuance data and monthly performance data are available under Transactions and Servicing Reports
- Transparent pricing for all CIRT transactions to-date is also available on Transactions and Servicing Reports
- Aggregate CIRT deal data is available through our innovative analytics tool, Data Dynamics®
Are you a reinsurer who wants to learn more about our CIRT program? We would love to meet with you. Contact us here.