Page 57 - July-August 2018 GSE Report Flip Book

FANNIE MAE
JJUALN. U- ARUYG. 22001188
“We are proud to lead the market in issuing this landmark transaction,” said Nadine Bates, SVP and Treasurer of Fannie Mae. “With this milestone, our objective is to accelerate the development of the SOFR market and we encourage other issuers in the debt markets to follow. As a member of the Federal Reserve’s Alternative Reference Rate Committee, we are honored to demonstrate our support to the ARRC in its tremendous efforts to help develop an alternative to USD LIBOR.” (Press Release, Fannie Mae, 07/26/18)
Fannie Mae continues its efforts to de-risk its balance sheet
On July 17, Fannie Mae announced the results of its seventh reperforming loan sale transaction, comprised of 26,900 loans with an unpaid principal balance totaling $6.14 billion, divided into four pools. The winning bidder of all four pools was DLJ Mortgage Capital, Inc. (Credit Suisse). The transaction is expected to close on September 21. (Press Release, Fannie Mae, 07/17/18)
On August 14, Fannie Mae began marketing its eighth sale of re-performing loans as part of the company’s effort to reduce the size of its retained mortgage portfolio. The sale consists of approximately 18,400 mortgages with an unpaid principal balance of $3.59 billion, which will be marketed in collaboration with Citigroup Global Markets. Bids are due on September 6, 2018. (Press Release, Fannie Mae, 08/14/18)
On July 26, Fannie Mae announced two credit insurance risk transfer transactions on $22 billion single-family mortgages. The two deals, CIRT 2018-4 and CIRT 2018-5, transferred $663 million of risk to 17 reinsurers and insurers. To date, Fannie Mae has acquired approximately $6.9 billion of insurance coverage on $278 billion of loans through the CIRT program. (Press Release, Fannie Mae, 07/26/18)
On July 26, Fannie Mae priced its fifth credit risk sharing transaction of the year—CAS Series 2018-C05, a $983 million note offering, that settled on August 3. “We were pleased with another successful CAS deal brought to the market, which included participation from several new investors,” said Laurel Davis, vice president of credit risk transfer, Fannie Mae. “We expect to return to the market with our next CAS deal, CAS 2018-C06, at the end of September.” (Press Release, Fannie Mae, 07/26/18)
© 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com 58