Fifth Fannie Mae CAS REMIC Deal Priced at $738 Million


Fannie Mae has priced Connecticut Avenue Securities (CAS) Series 2023-R05 – an approximately $738 million note offering that represents Fannie Mae’s fifth CAS REMIC transaction of the year.

CAS is Fannie Mae’s benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business.

Approximately 64,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $20.2 billion make up the reference pool for CAS Series 2023-R05. The reference pool includes collateral with loan-to-value ratios of 60.01% to 80.00%, which were acquired between May 2022 and June 2022. The loans 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 1M-1, 1M-2, 1B-1 and 1B-2 tranches and initially will retain the full 1B-3H first-loss tranche.

With the completion of this transaction, Fannie Mae will have brought 58 CAS deals to market, issued more than $62 billion in notes and transferred a portion of the credit risk to private investors on over $2 trillion in single-family mortgage loans, measured at the time of the transaction.

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