October marks the third anniversary of Fannie Mae’s Connecticut Avenue Securities (CAS) program, which allows institutional fund managers to invest along with Fannie Mae in securities backed by Fannie Mae-approved single-family mortgages. Equifax recently completed a study using its Credit Risk Insight for CAS tool to provide a detailed risk analysis of five of the securities that have been issued under the CAS program since its inception.
The Credit Risk Insight tool allows investors to compare and track CAS securities using anonymized credit file data matched to each borrower and co-signer of the loans that constitute the respective security.
In addition, Credit Risk Insight for CAS enables monthly comparison and segmentation of the component loans via VantageScore 3.0 credit scores, as well as by specific risk indicators such as length of credit history, amount of revolving-credit utilization, and the presence of any delinquent accounts.
The results of the study appear in an infographic available for download here.