McLEAN, VA—Fannie Mae has debuted another Credit Insurance Risk Transfer transaction, following the program's inception in 2014 and recent deals. These deals -- Freddie Mac has a similar one -- are structured to shift the credit risk of a pool of loans onto a panel of reinsurers. This latest deal follows this format, but per the MO of the GSEs, there is a twist that pushes the envelope just a tad further.

In this case the pool of loans are slightly riskier as they are newer. Also, this is the first time a foreign reinsurer has participated in such a transaction.

That said, the deal is very similar to its original format, Rob Schaefer, vice president for credit enhancement strategy & management, tells GlobeSt.com.

"We are trying to create a homogenous cookie cutter transaction that reinsurers will recognize and that the collateral will be familiar. That way these deals become easier to price and bring more reinsurers into the mix."

In that sense, the familiarity is already working. Five reinsurers participated in this deal, the most to date.

The collateral was a little less seasoned, and hence riskier, but only slightly: The loans in the latest deal were acquired April and August of 2014, compared to the last deal when the loans were circa 2013.

The fact that a foreign reinsurer participated is very telling about the product's appeal, Schaefer adds. "It is our intention to broaden the number of approved counter parties that are participating in these transactions. We want to tap as much eligible private capital as possible."

The GSE is working on additional transactions and the plan is to do a few more in 2015.