WASHINGTON - Fannie Mae has completed its ninth and final Credit Insurance Risk Transfer (CIRT) transaction for the year, CIRT 2023-9, marking a significant transfer of mortgage credit risk to the insurance and reinsurance sectors. The deal, which was executed today, transferred $270.7 million in mortgage credit risk from approximately 34,000 single-family mortgage loans.
These loans, with an outstanding unpaid principal balance of about $11.5 billion, were acquired by Fannie Mae between October and December of the previous year. They feature loan-to-value (LTV) ratios ranging from just over 80% to slightly under 97%. The selection of these loans was based on stringent credit standards and enhanced risk controls to ensure the integrity of the mortgage credit pool.
The completion of CIRT 2023-9 brings Fannie Mae's cumulative coverage for the year to approximately $3.66 billion on $121 billion in single-family loans across nine deals. This milestone underscores the organization's commitment to reducing taxpayer risk by increasing the role of private capital in the mortgage market.
Since the inception of the CIRT program, Fannie Mae has acquired roughly $25.9 billion in insurance on an aggregate loan amount of $870.2 billion. As of September 30, 2023, there is about $1.27 trillion in outstanding unpaid principal balance included in credit risk transfer transactions.
Fannie Mae provides market participants with resources such as Data Dynamics and detailed disclosures available on their Credit Insurance Risk Transfer webpage. These tools offer comprehensive transparency and facilitate the evaluation of ongoing and historical CIRT deals, supporting better decision-making among investors and stakeholders in the housing finance system.
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