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Statement

Statement of FHFA Acting Director Edward J. DeMarco on Fannie Mae Direct Debt Risk-Sharing Transaction

FOR IMMEDIATE RELEASE
10/15/2013

"FHFA is pleased that Fannie Mae is nearing completion of another risk-sharing transaction—the first Connecticut Avenue Securities or "C-deal" transaction. The C-deal series will be direct debt transactions in which Fannie Mae issues bonds to investors, allowing private capital to assume a portion of the mortgage credit risk taken on by Fannie Mae.

"The C-deal, and the mortgage insurance pool policy transaction that Fannie Mae completed last week, support FHFA’s 2013 Conservatorship Scorecard and FHFA’s Strategic Plan for the Enterprise Conservatorships. These transactions demonstrate different structures for transferring credit risk to investors thereby facilitating Fannie Mae’s reduced footprint in the marketplace and ultimately protecting taxpayers."

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.5 trillion in funding for the U.S. mortgage markets and financial institutions.

Contacts:
​Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030
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