Fannie Mae Prices Third Multifamily Connecticut Avenue Securities Deal

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced its third Multifamily Connecticut Avenue Securities® (MCAS™) transaction, MCAS Series 2023-01, a $595 million note offering. MCAS, Fannie Mae's issuance program designed to share credit risk on its multifamily conventional guaranty book of business, complements the successful risk sharing in its Delegated Underwriting and Servicing (DUS®) and Multifamily Credit Insurance Risk Transfer (MCIRT™) programs.

"We were excited to return to the market with our third MCAS transaction," said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. "We are committed to the MCAS program as a sustainable tool to support our strategy around capital management and, subject to market conditions, expect to return to this market annually with collateral from the previous year of acquisitions."

The reference pool for MCAS Series 2023-01 consists of 432 multifamily mortgage loans with an outstanding unpaid principal balance of approximately $24 billion. The reference pool includes multifamily loans underwritten according to Fannie Mae's standards and acquired by Fannie Mae from January 1, 2021, through December 31, 2022.

The loans included in this transaction are fixed-rate multifamily mortgages with terms less than or equal to 12 years and with unpaid principal balances greater than $30 million, in addition to other select eligibility requirements.

Fannie Mae will retain at least five percent of the underlying credit risk, corresponding to a vertical slice of each of the reference tranches, and will retain the full B-2H first-loss tranche.