Fannie Mae Announces Updates to its Mortgage-Backed Securities Prospectus to Support Connecticut Avenue Securities REMIC
WASHINGTON, DC – As part of Fannie Mae's (FNMA/OTC) continued effort to innovate and improve its credit risk transfer program, the company announced a significant milestone in furthering enhancements to its benchmark Connecticut Avenue Securities™ (CAS) structure. The enhancements, previously announced as a proposal in May 2017, will enable the company to structure future CAS offerings as notes issued by trusts that qualify as Real Estate Mortgage Investment Conduits (REMICs).
The company worked with market participants over the past year to gather feedback on the enhancements, and received positive responses to the proposal. As a result, Fannie Mae is releasing an updated Single-Family Mortgage-Backed Securities (MBS) Prospectus effective for fixed-rate and adjustable-rate mortgage single-family pools with issue dates on or after May 1, 2018. These pools are issued under our Amended and Restated 2016 Single-Family Master Trust Agreement.
The CAS REMIC is designed to promote continued growth of the market by expanding potential investor base for these securities, making the program more attractive to Real Estate Investment Trust (REIT) investors, as well as certain other investors, and limiting exposure to investors from Fannie Mae counterparty risk, without disrupting the To-Be-Announced (TBA) MBS market.
For more details regarding the changes, please refer to Fannie Mae's MBS and CRT announcement.
Market participants may contact the Fannie Mae Investor Help Line at 1-800-232-6643 or by e-mail with questions.
About Connecticut Avenue Securities
The amount of periodic principal and ultimate principal paid on CAS notes is determined by the performance of a large and diverse reference pool. For more information on individual CAS transactions and Fannie Mae’s approach to credit risk transfer, visit our credit risk sharing website.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families 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 fanniemae.com and follow us on twitter.com/FannieMae.