By klrw460 • July 22, 2024
$250 Million Deal Enhances Fannie Mae’s Multifamily Risk-Sharing Programs
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) has successfully priced its fourth Multifamily Connecticut Avenue Securities® (MCAS™) transaction, MCAS Series 2024-01, amounting to a $250 million note offering. This MCAS program is designed to share credit risk on Fannie Mae’s multifamily conventional guaranty book, complementing its well-established Delegated Underwriting and Servicing (DUS®) and Multifamily Credit Insurance Risk Transfer (MCIRT™) programs.
“We were pleased with the demand across all classes for our fourth MCAS transaction,” said Dan Dresser, Senior Vice President of Multifamily Capital Markets and Pricing at Fannie Mae. “We value the participation of our CRT investors and remain committed to using the MCAS program as a key tool for our capital management strategy.”
The reference pool for MCAS Series 2024-01 includes 147 multifamily mortgage loans with an outstanding unpaid principal balance of approximately $8.6 billion. These loans, underwritten to Fannie Mae’s standards, were acquired between January 1, 2023, and December 31, 2023.
The transaction features fixed-rate multifamily mortgages with terms of 10 years or less and unpaid principal balances exceeding $35 million, meeting additional specific eligibility criteria.
Fannie Mae will retain at least five percent of the underlying credit risk through a vertical slice of each reference tranche and will hold the full B-2H first-loss tranche.
For more information, read the original press release from: https://www.fanniemae.com/newsroom/fannie-mae-news/fannie-mae-prices-fourth-multifamily-connecticut-avenue-securities-deal