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Press Release

Fannie Mae Connecticut Avenue Securities Receives Additional Fitch Ratings

August 30, 2016

Credit Ratings Offer Greater Transparency and Liquidity for Investors

Pete Bakel


WASHINGTON, DC – Fannie Mae (FNMA/OTC) has sought and received additional ratings for a number of previously unrated Connecticut Avenue Securities (CAS) notes as part of an ongoing effort to bring increased transparency and liquidity to these securities. With these new credit ratings, these CAS notes are 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.

“We are pleased to provide this additional transparency and liquidity to the market for the benefit of our investors,” said Laurel Davis, vice president for credit risk transfer, Fannie Mae. “These new ratings reflect the strong performance of the underlying collateral of our Connecticut Avenue Securities and the strength of Fannie Mae’s credit risk management processes. We are happy with the continued investor interest in our Connecticut Avenue Securities transactions and we are committed to enhancing our offerings as we lead the effort of building a strong and transparent market for credit risk sharing.”

“The credit ratings on these notes reflect the strong performance to date of the loans and the structural features that reduce credit risk to investors over time,” said Grant Bailey, managing director, Fitch Ratings.

Fitch Ratings has assigned ratings to the following Connecticut Avenue Securities notes:

  • CAS 2013-C01 Class M-2 notes – Rating: BB+sf, outlook stable
  • CAS 2014-C01 Class M-2 notes – Rating: BBsf, outlook stable
  • CAS 2014-C02 Class 1M-2 notes – Rating: BBsf, outlook stable
  • CAS 2014-C02 Class 2M-2 notes – Rating: BB+sf, outlook stable
  • CAS 2014-C03 Class 1M-2 notes – Rating: B+sf, outlook stable
  • CAS 2014-C03 Class 2M-2 notes – Rating: BB+sf, outlook stable
  • CAS 2015-C01 Class 1M-2 notes – Rating: B+sf, outlook stable
  • CAS 2015-C01 Class 2M-2 notes – Rating: BBsf, outlook stable

As of August 2, 2016, Fannie Mae has brought 14 CAS deals to market since the program began, issued $18.1 billion in notes, and transferred a portion of the credit risk to private investors on single-family mortgage loans with an outstanding unpaid principal balance of approximately $621.5 billion pursuant to CAS transactions. Fannie Mae has transferred a portion of the credit risk on approximately $741.8 billion in single-family mortgages through all of its risk transfer programs.

Fannie Mae is the leading manager of single-family residential credit risk in the industry and continues to drive innovation in the space through the development and employment of its proprietary underwriting and quality control tools, which are unique to the industry. Tools such as Desktop Underwriter® and Collateral Underwriter give Fannie Mae the ability to further manage loan quality through the delivery process and increase transparency to enable parties to evaluate risk early in the loan origination process.

In addition to its flagship CAS program, Fannie Mae continues to reduce risk to taxpayers through its Credit Insurance Risk Transfer (CIRT) reinsurance program and other forms of risk transfer.

To view the full Fitch Ratings’ release, visit

About Connecticut Avenue Securities
CAS notes are bonds issued by Fannie Mae. 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 individual CAS transactions and Fannie Mae’s approach to credit risk transfer, visit To view the periods in 2016 during which Fannie Mae may issue Connecticut Avenue Securities (CAS), please view our 2016 CAS Issuance Calendar.

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, 2015 and its quarterly report on Form 10-Q for the quarter ended June 30, 2016. 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.

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 and follow us on