Fannie Mae has priced Connecticut Avenue Securities (CAS) Series 2022-R05, an approximately $952 million note offering that represents Fannie Mae’s fifth CAS REMIC transaction of the year. The reference pool for CAS Series 2022-R05 consists of approximately 127,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $38.5 billion.
The reference pool includes collateral with loan-to-value ratios of 80.01% to 97%, which were acquired between May 2021 and July 2021. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.
Fannie Mae will retain a portion of the 2M-1, 2M-2, 2B-1 and 2B-2 tranches and will retain the full 2B-3H first-loss tranche.
Wells Fargo Securities LLC is the lead structuring manager and joint bookrunner. BofA Securities Inc. is the co-lead manager and joint bookrunner. Co-managers are Barclays Capital Inc., Citigroup Global Markets Inc., Morgan Stanley & Co LLC, and StoneX Financial Inc. Selling group members are service-disabled veteran-owned Academy Securities Inc. and African American-owned Blaylock Van LLC.
With the completion of this transaction, Fannie Mae will have brought 49 CAS deals to market, issued over $56 billion in notes, and transferred a portion of the credit risk to private investors on over $1.8 trillion in single-family mortgage loans, measured at the time of the transaction.