Update on Fannie Mae Connecticut Avenue Securities (CAS) November Remittance Data

Subsequent to the delivery of mortgage loans to Fannie Mae, servicers may transfer servicing activities to other Fannie Mae approved servicers. In addition, servicers may transfer servicing to or from subservicers. Servicing transfers may impact the 30-day delinquency rate of mortgage loans. It is possible to observe an increase in reported 30-day delinquencies in the month before, during, and immediately following a servicing transfer, as borrowers receive notifications from their new servicer and the operational process of transferring the payment collection activities is completed.

In November of 2015, Fannie Mae experienced an increased amount of servicing transfers which likely caused a corresponding increase in the number of loans which were reported as having experienced 30-day delinquencies in the same month. In December of 2015, the aggregate number of loans which were reported as having experienced 30-day delinquencies decreased and is more consistent with months prior to November 2015. In addition, there was no significant increase in the aggregate number of loans reported as having experienced 60-day delinquencies in December.

Fannie Mae’s at-issuance and monthly CAS disclosures report “Other” as the servicer name for servicers whose combined loans constitute less than 1% of the total At Issuance reference pool UPB. As such, not all servicing transfers will be identifiable in the public dataset. The tables below illustrate the impact of servicing transfers during the month of November 2015.

Figure 1 – CAS Servicing Transfer Activity

The table below illustrates servicing transfers that impacted loans referenced in CAS deals over time.

Figure 2 – CAS 30-day Delinquencies

In the table below, the blue line displays all loans that experienced 30-day delinquencies during the corresponding month. The orange line excludes 30-day delinquencies that occurred in the first period following a change in servicer or subservicer.

Figure 3 – CAS 30-day Delinquencies during the November Reporting Period

The first column in the table below displays the D30 rate that is reported in the November Reporting period. The second column reflects the portion of those loans reported as 30 days delinquent which experienced a servicing transfer in the prior period. The third column displays the D30 rate excluding the impact of loans subject to a Servicing Transfer in the prior period.

Investors with questions may contact the Fannie Mae Investor Helpline at 1-800-237-8627 or by e-mail.

Originally published: 01/29/16