Fannie Mae Prices $993 Million Connecticut Avenue Securities (CAS) REMIC Deal

Transaction Represents Company’s Continued Commitment to Credit Risk Transfer

Matthew Classick
202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced Connecticut Avenue Securities^® (CAS) Series 2019-R05, a $993 million note offering that represents Fannie Mae's latest CAS REMIC^™ transaction. CAS is Fannie Mae's benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business.

"We are pleased to see continued strong participation in our new issue transactions, as well as a robust and liquid secondary market," said Laurel Davis, Vice President of Credit Risk Transfer, Fannie Mae. "We remain committed to promoting the ongoing growth of the credit risk transfer market."

The reference pool for CAS Series 2019-R05 consists of approximately 98,100 single-family mortgage loans with an outstanding unpaid principal balance of approximately $24 billion. The reference pool includes one group of loans comprised of collateral with loan-to-value ratios of 60.01 percent to 80.00 percent acquired from May 2018 through March 2019. 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, and 1B-1 tranches in order to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 1B-2H first loss tranche.

Barclays Capital Inc. ("Barclays") is the lead structuring manager and joint bookrunner and Morgan Stanley & Co. LLC ("Morgan Stanley") is the co-lead manager and joint bookrunner. Co-managers are BofA Securities, Inc. ("BofA Merrill Lynch"), Citigroup Global Markets Inc. ("Citigroup"), Goldman Sachs & Co. LLC ("Goldman Sachs"), and BNP Paribas Securities Corp. ("BNP"). Selling group members are Mischler Financial Group, Inc. and Siebert Cisneros Shank & Co., L.L.C.

With the completion of this transaction, Fannie Mae will have brought 35 CAS deals to market, issued $41 billion in notes, and transferred a portion of the credit risk to private investors on more than $1.3 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 $1.8 trillion in single-family mortgages, measured at the time of the transaction, through all of its credit risk transfer programs. In 2018, Fannie Mae introduced the CAS REMIC, which helps to expand the CAS investor base and further enhance the long-term liquidity of the program.

Fannie Mae's deliberate issuer strategy works to build the CAS program in a sustainable way to promote liquidity and to build a broad and diverse investor base. To promote transparency and to help investors evaluate our program, Fannie Mae provides ongoing, robust disclosure data to help credit investors evaluate the program, as well as access to news, resources, and analytics through its credit risk transfer webpages. This includes Fannie Mae's innovative Data Dynamics^® tool that enables market participants to interact with and analyze both CAS deals that are currently outstanding in the market and Fannie Mae's historical loan dataset. In addition, our recently enhanced EU Resources page, which helps European Union institutional investors and those managing funds subject to EU regulations comply with EU securitization regulation.

In addition to our 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. 

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 website.

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, 2018. 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.