Fannie Mae has completed a credit risk sharing transaction that transfers the actual losses on mortgages it insures – to reinsurers.

In this transaction, CIRT-2015-3 which became effective August 1, Fannie Mae retains risk for the first 50 basis points of loss on a $7 billion pool of loans. If this $35.2 million retention layer were exhausted, reinsurers would cover the next 250 basis points of loss on the pool, up to a maximum coverage of approximately $176.2 million.

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