Federal Nat Stock Price, News & Analysis

Fannie Mae (FNMA) announced the results of its fixed-price cash tender offers for Connecticut Avenue Securities (CAS) Debt Notes. A total of $3,134,035,239 in original principal amount was tendered by the deadline of November 19, 2021. Notable tender percentages included 82.22% for Series 2016-C03 and 92.93% for Series 2017-C02. The settlement date for accepted Notes is expected on November 23, 2021. BofA Securities and Barclays acted as lead managers for this process.

Fannie Mae's November 2021 commentary highlights significant inflation concerns, projecting an annual average of 6.2% in Q4 2021. The Federal Reserve may begin raising interest rates in Q4 2022 if inflation persists. Economic growth for 2023 is forecasted at 2.1%, supported by consumer spending and inventory restocking. Home sales expectations are revised upwards, with $1.9 trillion in mortgage originations projected for 2021. However, housing construction remains constrained due to supply chain issues, with anticipated growth of 4.8% in single-family home starts for 2022.

On November 16, 2021, Fannie Mae priced its Connecticut Avenue Securities (CAS) Series 2021-R02, a $984 million offering representing its second issuance of the year. The deal attracted significant investor demand and is based on a reference pool of approximately 125,000 mortgage loans worth about $35 billion. The securities aim to transfer credit risk and enhance financial transparency. Fannie Mae will retain portions of the 2M and 2B tranches to align interests with investors. With this transaction, Fannie Mae has issued over $49 billion in CAS notes since inception.

Fannie Mae (OTCQB: FNMA) has initiated cash tender offers for Connecticut Avenue Securities® (CAS) Debt Notes, set to expire on November 19, 2021. The total amount for the notes is approximately $3.22 billion, with specific offers ranging per note from $1,017.50 to $1,058.50. BofA Securities is the lead dealer manager, while Barclays serves as a dealer manager. Holders must tender their notes by the expiration to receive the tender offer consideration, with expected settlement on November 23, 2021. Forward-looking statements regarding the offers are included in the release.

Fannie Mae (OTCQB: FNMA) has released its 2022 Benchmark Securities Issuance Calendar, providing investors with key dates for the issuance of Benchmark Bills and Notes. Auctions for Benchmark Bills will occur weekly, typically on Wednesdays, with details announced on the same day. Monthly announcements for Benchmark Notes will also be made, indicating either the maturity date or the absence of an offering. The organization may choose to forgo scheduled issuances and will notify the market if this occurs.

Fannie Mae (OTCQB: FNMA) reported results from its 23rd reperforming loan sale, involving approximately 18,500 loans totaling $2.9 billion in unpaid principal balance. The sale, announced on October 7, 2021, will close on December 17, 2021. Winning bidders included PIMCO, JP Morgan, Goldman Sachs, and Credit Suisse. The pools featured loans with varying rates, such as 3.41% and 4.74%. The company emphasizes loss mitigation options for borrowers who may re-default, including loan modifications and forbearance.

Fannie Mae (OTCQB: FNMA) announced its first Credit Insurance Risk Transfer™ (CIRT™) transaction for 2021, covering $31.7 billion in unpaid principal balance (UPB) of fixed-rate loans. This deal, effective September 1, 2021, transferred nearly $1 billion of mortgage credit risk. Fannie Mae retains risk for the first 60 basis points of loss, with coverage up to $998 million from insurers and reinsurers. To date, the CIRT program has acquired $13.9 billion of insurance on $506 billion of loans. As of September 30, 2021, $616 billion in loans were referenced for credit risk transfer.

Fannie Mae (OTCQB: FNMA) announced that board members Renee L. Glover, Karin J. Kimbrough, and Christopher Brummer have been recognized on Savoy magazine's 2021 list of Most Influential Black Corporate Directors. Glover's inclusion marks her second recognition on this list. Chairwoman Sheila C. Bair praised their contributions to Fannie Mae's mission, which focuses on providing liquidity, stability, and affordability in U.S. housing finance. CEO Hugh R. Frater acknowledged their expertise, highlighting their role in fostering a safer housing finance system.