Fannie Mae Prices $765 Million Connecticut Avenue Securities (CAS) REMIC Deal

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced Connecticut Avenue Securities® (CAS) Series 2023-R04, an approximately $765 million note offering that represents Fannie Mae's fourth CAS REMIC® transaction of the year. CAS is Fannie Mae's benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business.

The reference pool for CAS Series 2023-R04 consists of approximately 67,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $20.9 billion. The reference pool includes collateral with loan-to-value ratios of 60.01 percent to 80.00 percent, which were acquired between March 2022 and April 2022. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.

Fannie Mae will retain a portion of the 1M-1, 1M-2, 1B-1, and 1B-2 tranches, and initially will retain the full 1B-3H first-loss tranche.

BofA Securities, Inc. ("BofA") is the lead structuring manager and joint bookrunner. StoneX Financial Inc. ("StoneX") is the co-lead manager and joint bookrunner. Co-managers are Citigroup Global Markets Inc. ("Citigroup"), Morgan Stanley & Co, LLC ("Morgan Stanley"), Santander US Capital Markets LLC ("Santander"), and Wells Fargo Securities, LLC ("Wells Fargo"). Selling group members are Service-Disabled Veteran-owned Drexel Hamilton, LLC and African-American & women-owned Siebert Williams Shank & Co., LLC.

With the completion of this transaction, Fannie Mae will have brought 57 CAS deals to market, issued nearly $62 billion in notes, and transferred a portion of the credit risk to private investors on over $2 trillion in single-family mortgage loans, measured at the time of the transaction.

To promote transparency and to help credit investors evaluate our securities and the CAS 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 our innovative Data Dynamics® tool that enables market participants to interact with and analyze CAS deals that are currently outstanding in the market and Fannie Mae's historical loan dataset.

Beginning today, Fannie Mae now provides monthly loan-level and deal-level data in European Securities and Markets Authority (ESMA) Annex 2 and Annex 12 template formats directly in Data Dynamics. This data will be provided on a go-forward basis for all benchmark CAS deals beginning with CAS 2019-R01. Our EU Resources and UK Resources webpages are designed to help European Union and UK institutional investors, as well as those managing funds subject to EU/UK regulations.

In addition to our flagship CAS program, Fannie Mae continues to transfer mortgage credit risk through its Credit Insurance Risk Transfer™ (CIRT™) reinsurance program.

About Connecticut Avenue Securities
CAS REMIC notes are issued by a bankruptcy-remote trust. 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, visit our credit risk transfer webpage.