Multifamily Credit Insurance Risk Transfer

Multifamily Credit Insurance Risk Transfer (MCIRT™) helps reduce credit risk for Fannie Mae while bringing additional private capital to the multifamily housing market.

Building on our long tradition of transferring risk to the private sector, MCIRT is designed to complement – and supplement – Multifamily's Delegated Underwriting and Servicing (DUS®) loss sharing program, where originating lenders share in the credit risk on our loans.

Since 2016, MCIRT has helped mitigate the remaining mortgage credit risk held by Fannie Mae by transferring a portion of the risk to diversified insurers and reinsurers counterparties.

These transactions allow us to bring a deeper, more resilient pool of capital to the Multifamily industry, increasing the liquidity, stability, and sustainability of the market.

$81B of unpaid principal balance was covered through MCIRT transactions, measured at the time of the transactions, as of Q1 2021.

$1.9B of coverage was provided by reinsurers through MCIRT transactions as of Q1 2021.


MCIRT's deal structure

Fannie Mae structures its MCIRT deal in the following manner:

mcirt deal structure

MCIRT policy structure

Each MCIRT transaction is structured with a retention layer and an aggregate limit of liability separated into tranches to appeal to various risk appetites. Actual loss is determined after property disposition and lender loss sharing. MCIRT transactions are typically structured as follows:

mcirt policy structure

Elements of a typical MCIRT deal

elements typical mcirt deal

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