Fannie Mae (OTC Bulletin Board: FNMA) priced its sixth credit risk sharing transaction of 2018 under its Connecticut Avenue Securities® (CAS) program. CAS Series 2018-C06, a $918 million note offering, is scheduled to settle on October 10, 2018. CAS is Fannie Mae's benchmark issuance program designed to share credit risk on its single-family conventional guaranty book of business.

"We were pleased with another successful CAS deal brought to the market, which was met with high demand from a deep base of investors," said Laurel Davis, vice president of credit risk transfer, Fannie Mae. "We look forward to launching our new CAS REMIC structure with our final deal of 2018, which will come to market later this quarter. The CAS REMIC is designed to maintain the stability and liquidity of the existing CAS program, while introducing new benefits for both first-time and existing investors."

The reference pool for CAS Series 2018-C06 consists of more than 105,000 single-family mortgage loans with an outstanding unpaid principal balance of approximately $25.7 billion. The reference pool will include two groups, comprised of collateral with loan-to-value ratios of 60.01 to 80.00 percent and 80.01 to 97.00 percent. The mortgage loans that have loan-to-value ratios of 60.01 to 80.00 percent were acquired from March 2018 through April 2018, and mortgage loans that have loan-to-value ratios of 80.01 to 97.00 percent were acquired from February 2018 through March 2018. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortizing mortgages and were underwritten using rigorous credit standards and enhanced risk controls.

About Connecticut Avenue Securities
CAS notes are bonds issued by Fannie Mae. The amount of periodic principal and ultimate principal paid by Fannie Mae is determined by the performance of a large and diverse reference pool. For more information on individual CAS transactions and Fannie Mae's approach to credit risk transfer, visit our credit risk sharing website.