Fannie Mae Connecticut Avenue Securities Receive Additional Fitch Ratings

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) sought and received additional ratings for a number of previously unrated Connecticut Avenue Securities® (CAS) notes as part of its ongoing effort to bring increased transparency and liquidity to these securities. With the new credit ratings, these CAS notes may be eligible to be purchased in the secondary market by funds that require a rating for investment, and the notes are now likely to receive more favorable financing terms, further enhancing their liquidity.

"The new ratings demonstrate the strong performance of the underlying collateral of our Connecticut Avenue Securities program and the strength of Fannie Mae's credit risk management processes," said Devang Doshi, Senior Vice President, Single-Family Capital Markets, Fannie Mae.

"The credit ratings on these notes reflect materially better credit protection and improving loan performance, which has reduced credit risk since the onset of the pandemic. In addition, home price appreciation has led to a build-up of borrower equity resulting in lower expected losses," said Kevin Kendra, Managing Director, Fitch Ratings.

Fitch Ratings has assigned ratings to the following Connecticut Avenue Securities notes:

The full Fitch Ratings release can be found here.

Fannie Mae has brought 44 CAS deals to market, issued over $50 billion in notes, and transferred a portion of the credit risk to private investors on over $1.6 trillion in single-family mortgage loans, measured at the time of the transaction.

Since 2013, Fannie Mae has transferred a portion of the credit risk on single-family mortgages with an unpaid principal balance close to $2.4 trillion through its credit risk transfer efforts, including CAS, Credit Insurance Risk Transfer™ (CIRT™), and other forms of risk transfer.

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 our approach to credit risk management, individual CAS transactions, and EU and UK investor resources, visit our credit risk transfer website.