The Federal National Mortgage Association (Fannie Mae) has completed a multi-tranche Multifamily Credit Insurance Risk Transfer (MCIRT) transaction covering a pool of $10.7 billion of multifamily loans.
MCIRT 2019-02 is the sixth multifamily CIRT transaction as part of Fannie Mae’s ongoing effort to increase the role of private capital in the multifamily mortgage market and mitigate risk for US taxpayers.
It comes shortly after Fannie Mae announced a similar CIRT deal to secure $14.8 billion of reinsurance on 30-year single family loans.
The latest transaction covers a loan pool consisting of 1,031 loans, secured by 1,044 multifamily properties, acquired by Fannie Mae from November 2018 through February 2019.
“This multifamily credit risk sharing transaction attracted new investors and enabled us to transfer approximately $348 million of risk to reinsurers and insurers,” said Jonathan Gross, Vice President, Multifamily, Fannie Mae.
“We continue to innovate and bring transparency to the market with our new Multifamily CRT website where you can find our Multifamily Loan Performance Dataset and information about our Multifamily Credit Risk Management structure,” he continued.
Since 2016, Fannie Mae has transferred a portion of the credit risk on multifamily mortgages with an aggregate unpaid principal balance of more than $61.9 billion through its CIRT program.
