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WASHINGTON, Oct. 6, 2025 – Fannie Mae (OTCQB: FNMA) announced today the results of its fixed-price cash tender offers for any and all of certain Connecticut Avenue Securities® (CAS) Notes. The offers were subject to the terms and conditions detailed in the Offer to Purchase and related Notice of Guaranteed Delivery, both dated September 29, 2025.
A total of $2.000 billion in original principal amount of Notes were validly tendered and not validly withdrawn by the Expiration Time of 5:00 p.m. on October 3, 2025. The following table summarizes the original principal balance, percentage of original principal amount tendered, and the original principal amount tendered for each series of Notes:
|
Name of Security |
Trust |
CUSIP |
ISIN |
Original Principal Balance1 |
Percentage of Original Principal Amount Tendered2 |
Original Principal Amount Tendered3 |
|
Connecticut Avenue Securities, Series 2017-C03, Class 1B-1 Notes |
N/A |
30711XJW5 |
US30711XJW56 |
$26,045,000.00 |
100.00 % |
$26,045,000.00 |
|
Connecticut Avenue Securities, Series 2017-C06, Class 2B-1 Notes |
N/A |
30711XSW5 |
US30711XSW55 |
$19,316,000.00 |
1.01 % |
$195,000.00 |
|
Connecticut Avenue Securities, Series 2017-C07, Class 1B-1 Notes |
N/A |
30711XUW2 |
US30711XUW28 |
$27,201,000.00 |
85.33 % |
$23,211,000.00 |
|
Connecticut Avenue Securities, Series 2018-C04, Class 2B-1 Notes |
N/A |
30711XR30 |
US30711XR309 |
$17,000,000.00 |
0.00 % |
– |
|
Connecticut Avenue Securities, Series 2018-C06, Class 2B-1 Notes |
N/A |
30711X5V2 |
US30711X5V23 |
$25,087,000.00 |
39.78 % |
$9,980,000.00 |
|
Connecticut Avenue Securities, Series 2020-SBT1, Class 2M-2 Notes |
Connecticut Avenue Securities Trust 2020-SBT1 |
20753VCZ9 |
US20753VCZ94 |
$316,415,000.00 |
100.00 % |
$316,415,000.00 |
|
Connecticut Avenue Securities, Series 2021-R02, Class 2M-2 Notes |
Connecticut Avenue Securities REMIC Trust 2021-R02 |
20754KAB7 |
US20754KAB70 |
$283,566,000.00 |
84.73 % |
$240,260,886.00 |
|
Connecticut Avenue Securities, Series 2022-R01, Class 1M-2 Notes |
Connecticut Avenue Securities REMIC Trust 2022-R01 |
20754LAB5 |
US20754LAB53 |
$434,007,000.00 |
81.03 % |
$351,667,668.00 |
|
Connecticut Avenue Securities, Series 2022-R06, Class 1M-1 Notes |
Connecticut Avenue Securities REMIC Trust 2022-R06 |
20754NAB1 |
US20754NAB10 |
$332,500,000.00 |
92.61 % |
$307,936,000.00 |
|
Connecticut Avenue Securities, Series 2022-R07, Class 1M-1 Notes |
Connecticut Avenue Securities REMIC Trust 2022-R07 |
20754MBZ9 |
US20754MBZ95 |
$391,813,000.00 |
93.49 % |
$366,305,000.00 |
|
Connecticut Avenue Securities, Series 2022-R08, Class 1M-1 Notes |
Connecticut Avenue Securities REMIC Trust 2022-R08 |
20755DAA4 |
US20755DAA46 |
$377,927,000.00 |
94.83 % |
$358,399,645.00 |
|
$2,250,877,000.00 |
88.87 % |
$2,000,415,199.00 |
|
1 Represents the aggregate original principal amount of the applicable Class issued on the issue date thereof, less the aggregate original principal amount of such Class repurchased by the Company pursuant to one or more prior tender offers, if applicable. |
|
2 Rounded to the nearest hundredth of a percent. |
|
3 Original Principal Amount tendered includes $27,281,728 of Notes tendered using the Notice of Guaranteed Delivery. |
The settlement date for the Notes tendered and accepted for purchase in the Offers is expected to be Tuesday, October 7, 2025. Notes tendered and accepted using the Notice of Guaranteed Delivery are expected to be purchased on October 8, 2025.
BoA Securities acted as the lead dealer manager, and Wells Fargo Securities acted as the dealer manager for the Offers. Global Bondholder Services Corporation was the tender agent and information agent.
Fannie Mae’s Strategic Move in CAS Notes Buyback Signals Confidence in Mortgage Market Stability
Fannie Mae’s recent tender offer for its Connecticut Avenue Securities (CAS) notes, resulting in the repurchase of approximately $2 billion in original principal amount, reflects a calculated move to manage its capital structure and potentially reduce future risk exposure. These CAS notes, which transfer a portion of the credit risk on Fannie Mae’s single-family mortgage portfolio to private investors, are a key component of the company’s risk management strategy.
Analysts at CNBC note that the high participation rate in the tender offer, with several series seeing near-complete or substantial repurchase, suggests that investors are receptive to Fannie Mae’s offer price and possibly indicates a perception of reduced risk or improved stability within the underlying mortgage assets.
The timing of this tender offer is also noteworthy. Amidst fluctuating interest rates and evolving housing market dynamics, Fannie Mae’s decision to buy back these notes could be viewed as a sign of confidence in its ability to manage credit risk and navigate potential market volatility. This move could also free up capital for other strategic initiatives, such as investments in technology or new mortgage products.
Furthermore, the selection of BoA Securities and Wells Fargo Securities as dealer managers underscores the significance of this transaction and Fannie Mae’s commitment to engaging with leading financial institutions in its capital market activities.
Fannie Mae continues to adapt its risk-sharing strategies to optimize its balance sheet and ensure its long-term stability.
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