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BRIEF-Fannie Mae announces third front-end credit insurance risk transfer transaction
May 25, 2017 / 3:09 PM / 4 months ago

BRIEF-Fannie Mae announces third front-end credit insurance risk transfer transaction

May 25 (Reuters) - Federal National Mortgage Association

* Fannie Mae announces third front-end credit insurance risk transfer transaction

* Has secured commitments for a new front-end credit insurance risk transfer transaction

* Loan pool is expected to be filled over course of nine months, beginning with Q2 2017 deliveries

* Fannie Mae will retain risk for first 50 basis points of loss on an approximately $5.2 billion pool of loans

* CIRT will provide protection for any credit losses not covered by underlying primary mortgage insurance

* All loans covered by new transaction will already have primary mortgage insurance coverage

* Transaction to shift part of credit risk on pools of single-family loans with combined upb of about $5.2 billion to a group of reinsurers

* Fannie Mae will retain risk for first 50 basis points of loss on an approximately $5.2 billion pool of loans Source text for Eikon: Further company coverage:

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