Fannie Mae Prices $1.6B C-Series Offering

WASHINGTON, DC—Fannie Mae has launched the third, and largest to date, offering in its Connecticut Avenue Securities (C-deals) series—a bundle of $1.6 billion loans with original loan-to-value ratios of up to 97%. Previous C-deal offerings included reference loans with up to 80% LTVs. The offering priced on Wednesday and is scheduled to settle on May 28. The GSE floated its last C-Series in January 2014, in a $750 million offering. Its first, a $675 million transaction, came to market in October.

The higher LTV in this series is not a surprise, says Laurel Davis, vice president for credit risk transfer at Fannie Mae. “As the market moves from a refinance market to a purchase money market, it is more common to see loans with higher LTVs.”