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Press Release

Fannie Mae Connecticut Avenue Securities Receive Additional Fitch Ratings

January 18, 2022

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:

Deal Note Class CUSIP Rating
CAS 2017-C01 Group 1 1B1 30711XEQ3 BBB+ sf
CAS 2017-C02 Group 2 2B1 30711XGQ1 BB+ sf
CAS 2017-C04 Group 2 2B1 30711XLU6 BB sf
CAS 2017-C06 Group 1 1B1 30711XQW7 BB+ sf
CAS 2017-C06 Group 2 2B1 30711XSW5 BB sf
CAS 2017-C07 Group 1 1B1 30711XUW2 BB+ sf
CAS 2017-C07 Group 2 2B1 30711XWW0 BB sf
CAS 2018-C01 Group 1 1B1 30711XYW8 BB+ sf
CAS 2018-C02 Group 2 2B1 30711XC44 BB- sf
CAS 2018-C03 Group 1 1B1 30711XJ62 BB sf
CAS 2018-C04 Group 2 2B1 30711XR30 B sf
CAS 2018-C05 Group 1 1B1 30711XY32 BB- sf
CAS 2018-C06 Group 1 1B1 30711X3M4 B+ sf
CAS 2018-C06 Group 2 2B1 30711X5V2 B- sf
CAS 2018-R07 Group 1 1B1 20753QAF6 B sf
CAS 2019-R01 Group 2 2B1 20754FAL6 B- sf

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.

About Fannie Mae
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 housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit: | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Media Contact
Matthew Classick

Fannie Mae Newsroom

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Fannie Mae Resource Center

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, 2020. 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.