Fannie Mae is planning to follow the lead of its rival, Freddie Mac, and offer securities with exposure to actual losses on the single-family mortgages that it ensures.

So far, the first seven Connecticut Avenue Securities transactions completed by Fannie Mae, including one that priced today, offer investors exposure to losses based on a calculation of what losses the loans might eventually incur. Freddie Mac completed its first transaction with exposure to actual losses in April; the deal was upsized to $1.01 billion from $720 million originally in response to strong demand.

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