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INVESTMENT GOVERNMENT PROPERTY PRESERVATION
FANNIE MAE
EXECUTES
21B
CIRT ON SINGLE-
FAMILY LOANS
Fannie Mae announced the execution of its
fifth Credit Insurance Risk Transfer (CIRT)
transaction of 2022 in the amount of $21
billion.
Effective April 1, Fannie Mae will retain
risk for the first 65 basis points of loss on the
$21 billion covered loan pool. If the $136.2
million retention layer is exhausted, 22 insurers
and reinsurers will cover the next 350 basis
points of loss on the pool, up to a maximum
coverage of $733.3 million.
"We appreciate our continued partnership
with the 22 insurers and reinsurers that have
committed to write coverage for this deal,"
said Rob Schaefer, Fannie Mae VP for Capital
Markets.
As part of Fannie Mae's ongoing effort to
reduce taxpayer risk by increasing the role of
private capital in the mortgage market, CIRT
2022-5 transferred $733.3 million of mortgage
credit risk to private insurers and reinsurers.
CIRT 2022-5 consists of about 67,700
single-family mortgage loans with an
outstanding unpaid principal balance of
approximately $21 billion. e covered pool
includes collateral with loan-to-value ratios of
80.01% to 97.00% acquired between October
2021 and December 2021. e loans included
in this transaction are fixed-rate, generally
30-year term, fully amortizing mortgages,
and were underwritten using "rigorous" credit
standards and risk controls.
As of March 31, 2022, approximately $906
billion in outstanding UPB of loans in our
single-family conventional guaranty book of
business were included in a reference pool for a
credit risk transfer transaction.
To promote transparency and to help
insurers and reinsurers evaluate the CIRT
program, Fannie Mae provides ongoing, robust
disclosure data, as well as access to news,
resources, and analytics through its credit risk
transfer webpages.
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