Fannie Mae announced the execution of its seventh and final Credit Insurance Risk Transfer (CIRT) transaction for the year, designated as CIRT 2024-L4. This marks the completion of its 2024 CIRT program.
The transaction successfully transferred $338.6 million of mortgage credit risk to private insurers and reinsurers. This mechanism is a core component of Fannie Mae's strategy to share risk with the private sector.
By completing its annual CIRT program, Fannie Mae enhances its financial stability and reduces its exposure to potential mortgage defaults. This proactive risk management approach is vital for the company's operations under conservatorship.
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