Credit Insurance Risk Transfer
Credit Insurance Risk Transfer helps reduce credit risk for Fannie Mae while bringing additional private capital to the Single-Family housing market.
Credit Insurance Risk Transfer™ (CIRT™) transactions transfer credit risk on a pool of loans to an insurance provider, which may then transfer that risk to one or more reinsurers, complementing Fannie Mae's other current risk transfer offerings that leverage the capital markets.
As of Q4 2023, $876B of unpaid principal balance of Single-Family mortgage loans has been partially covered through CIRT transactions, measured at the time of the transactions.
Program Highlights
- CIRT is designed to be flexible, offering both post-acquisition and front-end CIRT transactions, while covering various loan types acquired by Fannie Mae.
- Reinsurers generally have diversified books of business that are not heavily concentrated in or highly correlated to U.S. residential mortgage risk, making the reinsurance market a significant and attractive source of private capital.
- As the largest manager of residential mortgage credit, we set the standard for managing credit risk throughout the life cycle of a mortgage – continuously innovating to reduce default risk and credit losses.
Reinsurer Resources
- Data Dynamics®, our free analytics platform, allows investors to gain insights into historical loan performance trends, issuance profiles, and monthly performance.
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