WASHINGTON, November 3, 2021 / PRNewswire / – Fannie Mae (OTCQB: FNMA) announced that it has completed its first Credit Insurance Risk Transfer ™ (CIRT ™) transaction of 2021. CIRT 2021-1 covers $ 31.7 billion on the unpaid principal balance (UPB) of an original term generally 30 years, fixed rate loans acquired from January to March 2021. The deal was transferred almost Billion dollars of mortgage credit risk. Since its inception, Fannie Mae has acquired approximately $ 13.9 billion of insurance coverage in $ 506 billion of single-family loans through the CIRT program, measured at the time of issuance, for both initial and post-acquisition (bulk) transactions.

“We are pleased with the execution of CIRT 2021-1 and we appreciate our partnership with the 20 insurers and reinsurers that signed the coverage of this agreement,” he said. Rob schaefer, Vice President of Credit Improvement Strategy and Management, Fannie Mae.

With CIRT 2021-1, which came into force September 1, 2021, Fannie Mae will retain risk for the first 60 basis points of loss in a $ 31.7 billion Single-family home loan pool with a loan-to-value ratio greater than 80 percent and less than or equal to 97 percent. If he $ 190 million The retention layer is exhausted, 20 insurers and reinsurers will cover the next 315 basis points of loss in the pool, up to a maximum coverage of approximately $ 998 million.

Coverage under this agreement is provided based on actual losses for a period of 12.5 years. Depending on the payment of the insured group and the principal amount of the insured loans that become seriously delinquent, the total amount of coverage may be reduced on the first anniversary and each month thereafter. Fannie Mae may cancel the coverage of each agreement at any time after the fifth anniversary of the effective date by paying a cancellation fee.

From September 30, 2021, $ 616 billion In UPB outstanding loans in our portfolio of single-family conventional guarantee businesses were included in a reference group for a credit risk transfer transaction.

To promote transparency and help insurers and reinsurers evaluate the CIRT program, Fannie Mae provides robust and ongoing disclosure information, as well as access to news, resources, and analysis through its credit risk transfer web pages. This includes the innovative Data dynamics® A tool that allows market participants to interact and analyze both CIRT deals currently in circulation in the market and Fannie Mae’s historical loan data set. For more information on individual CIRT transactions, including prices, visit our Credit Insurance Risk Transfer website.

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Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for people across the country. We are driving positive changes in home financing to facilitate the home buying process, while reducing costs and risks. For more information visit:
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