This article from HousingWire discusses Fannie Mae’s execution of CIRT, or Credit Insurance Risk Transfer, deals on $31 billion of single-family loan securities. CIRT deals are designed to transfer risk from Fannie Mae to private capital investors (referred to here as reinsurers). Doing so helps Fannie Mae manage risk and concentrate on its mission to ensure access to mortgage credit and support the housing market.
The CIRT deals executed by Fannie Mae are related to single-family loans that are already in the company’s portfolio. In a press release, Fannie Mae said these deals “will transfer credit risk on approximately $31 billion UPB of single-family loans with note rates between 4.5 and 5 percent and were issued with the help of multiple reinsurers.”
This type of deal is meant to offer private capital investors a great opportunity to acquire a more diversified portfolio of mortgage credit risk. Fannie Mae says that it has continuously been working with reinsurers over the past six months to develop more innovative and efficient risk transfer structures. The company has now issued approximately $115 billion of CIRT deals since 2013.
By executing CIRT deals and transferring risk to private capital investors, Fannie Mae is equipped to continue its mission of providing access to safe and affordable mortgage credit and supporting the housing market while minimizing losses to taxpayers. This is the fourth CIRT transaction issued by Fannie Mae this year, and speaks highly to the progress the company is able to make in managing their risk.
You can read this full article at: https://www.housingwire.com/articles/fannie-mae-executes-cirt-deals-on-31b-of-single-family-loans/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.