Fannie Mae Announces 2025 Connecticut Avenue Securities (CAS) Issuance Calendar

Rhea-AI Summary

Fannie Mae (FNMA) has released its 2025 Connecticut Avenue Securities® (CAS) Issuance Calendar, projecting approximately $4 billion in total CAS volume across 5-7 transactions. The company plans to launch CAS 2025-R01, a low-LTV transaction, in mid-to-late January 2025. The execution of these issuances will depend on market conditions and other factors.

Since 2013, Fannie Mae has transferred credit risk on single-family mortgages with an unpaid principal balance of about $3.2 trillion through various Credit Risk Transfer (CRT) efforts, including CAS, Credit Insurance Risk Transfer™ (CIRT™), and other risk transfer methods.

Positive

• Projected $4 billion in CAS issuance volume for 2025
• Continuation of successful credit risk transfer program that has handled $3.2 trillion in mortgage principal balance since 2013

Negative

• None.

WASHINGTON, Dec. 18, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced today its 2025 Connecticut Avenue Securities^® (CAS) Issuance Calendar as part of its efforts to ensure transparency in the market. Fannie Mae has the option to issue, or forgo issuance of, one or more CAS deals during each window.

"Fannie Mae will continue to be dynamic in its approach to CRT issuance in 2025. We currently expect total CAS volume of around $4 billion across 5-7 transactions," said Kathleen Pagliaro, Fannie Mae Vice President of Credit Risk Transfer. "We expect to return to market in mid-to-late January, with CAS 2025-R01, a low-LTV transaction. Volumes and decisions to utilize or forgo available windows continue to be dependent on market conditions and other factors."

Since 2013, Fannie Mae has transferred a portion of the credit risk on single-family mortgages with an unpaid principal balance of approximately $3.2 trillion through its CRT 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 website.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
fanniemae.com | X (formerly Twitter) | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

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Fannie Mae Resource Center
1-800-2FANNIE (800-232-6643)

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, 2023. 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.

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SOURCE Fannie Mae

FAQ

What is Fannie Mae's projected CAS issuance volume for 2025?

Fannie Mae projects approximately $4 billion in total CAS volume across 5-7 transactions for 2025.

When will FNMA launch its first CAS transaction of 2025?

Fannie Mae plans to launch CAS 2025-R01, a low-LTV transaction, in mid-to-late January 2025.

How much mortgage principal balance has FNMA transferred through CRT since 2013?

Since 2013, Fannie Mae has transferred credit risk on single-family mortgages with an unpaid principal balance of approximately $3.2 trillion.

What factors will influence FNMA's CAS issuance decisions in 2025?

Fannie Mae's CAS issuance decisions will depend on market conditions and other factors, with flexibility to issue or forgo issuance during each window.