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Press Release

Fannie Mae Prices $1 Billion Connecticut Avenue Securities Risk Sharing Deal

May 24, 2017

Aleksandrs Rozens


WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its fourth­­­­ credit risk sharing transaction of 2017 under its Connecticut Avenue Securities™ (CAS) program. CAS Series 2017-C04, a $1.003 billion note offering, is scheduled to settle on May 31, 2017. CAS is Fannie Mae’s benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business.

“We continue to see very strong demand from investors in our CAS program, reflecting the strength of the market and solid fundamentals on the underlying loans.” said Laurel Davis, vice president of credit risk transfer, Fannie Mae. “This offering continued to attract new investors to the CAS program, building upon a large base of investors who have been actively participating in our Group 2, 80 to 97 percent LTV collateral deals.”

The reference pool for CAS Series 2017-C04 consists of more than 125,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $30.2 billion. The loans in this reference pool have original loan-to-value ratios between 80 and 97 percent and were acquired from October 2016 through December 2016. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.

Fannie Mae will retain a portion of the 2M-1, 2M-2, and 2B-1 tranches in order to align its interests with investors throughout the life of the deal. Fannie Mae will retain the full 2B-2 tranche.


Offered Amount

Pricing Level




1-month Libor plus 85 bps

BBB-sf from Fitch Ratings and BBB (sf) from KBRA, Inc.



1-month Libor plus 285 bps

Bsf from Fitch Ratings and B+ (sf) from KBRA, Inc.



1-month Libor plus 505 bps

This class will not be rated

J.P. Morgan Securities LLC (“JP Morgan”) is the lead structuring manager and joint bookrunner and Citigroup Global Markets Inc. (“Citi”) is the co-lead manager and joint bookrunner. Co-managers are Barclays Capital Inc. (“Barclays”), BNP Paribas Securities Corp. (“BNP Paribas”), Merrill Lynch, Pierce, Fenner & Smith (“BofA Merrill”), and Wells Fargo Securities, LLC (“Wells Fargo Securities”). Selling group members are Academy Securities Inc. and Ramirez & Co., Inc.

Fannie Mae’s credit risk sharing program has been recognized by leading industry publication, GlobalCapital, for successfully navigating the securitization market in 2016. GlobalCapital named Fannie Mae as the “Best Overall Issuer” for both single-family and multifamily products, and “Best RMBS Issuer” for the CAS program. Fannie Mae’s Connecticut Avenue Securities, Series 2016-C01, transaction was named “Best RMBS Deal of the Year” and GlobalCapital recognized Fannie Mae’s single-family loan performance dataset as “RMBS Data Provider of the Year.”

Through this transaction and other credit risk sharing programs, Fannie Mae increases the role of private capital in the mortgage market and reduces taxpayer risk. With the completion of this transaction, Fannie Mae will have brought 20 CAS deals to market and issued $24.9 billion in notes since the program began.

Fannie Mae’s deliberate issuer strategy works to build the CAS program in a sustainable way to promote liquidity and to build a broad and diverse investor base. To promote transparency and to help investors evaluate our program, Fannie Mae provides ongoing robust disclosure data to help credit investors evaluate the program, as well as access to news, resources, and analytics through its credit risk sharing webpages. This includes Fannie Mae’s innovative Data Dynamics™ tool, which enables market participants to analyze CAS deals that are currently outstanding.

In addition to the 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.

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 our credit risk sharing website. To view the periods in 2017 during which Fannie Mae may issue Connecticut Avenue Securities (CAS), please view our 2017 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, 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