"FHFA is pleased that Fannie Mae is nearing completion of another risk-sharing transaction—the first Connecticut Avenue Securities or "C-deal" transaction. The C-deal series will be direct debt transactions in which Fannie Mae issues bonds to investors, allowing private capital to assume a portion of the mortgage credit risk taken on by Fannie Mae.
"The C-deal, and the mortgage insurance pool policy transaction that Fannie Mae completed last week, support FHFA’s 2013 Conservatorship Scorecard and FHFA’s Strategic Plan for the Enterprise Conservatorships. These transactions demonstrate different structures for transferring credit risk to investors thereby facilitating Fannie Mae’s reduced footprint in the marketplace and ultimately protecting taxpayers."
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030