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July 2023 » thefivestar.com 63 J O U R N A L July 2023 of the 21 insurers and reinsurers that have committed to write coverage for these deals," said Rob Schaefer, Fannie Mae VP, Capital Markets. "We're also pleased to continue our long-standing partnership with Aon and begin a new partnership with their new sub-broker, Protecdiv, a company focused on bringing exceptional service and diverse ideas to its clients and partners. We hope their participation will help draw more diverse-led firms into this space." The covered loan pool for CIRT 2023-6 consists of approximately 30,000 single-fam- ily mortgage loans with an outstanding unpaid principal balance of approximately $9.65 billion. The covered pool includes collateral with loan-to-value (LTV) ratios of 60.01 percent to 80% acquired between April 2022 and August 2022. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortized mortgages and were underwritten using rigorous credit standards and enhanced risk controls. The covered loan pool for CIRT 2023-7 consists of approximately 51,000 single-fam- ily mortgage loans with an outstanding un- paid principal balance of approximately $16.9 billion. The covered pool includes collateral with loan-to-value (LTV) ratios of 80.01% to 97.00% acquired between July 2022 and September 2022. The loans included in this transaction are fixed-rate, generally 30-year term, fully amortized mortgages and were underwritten using rigorous credit standards and enhanced risk controls. "Aon has proudly served Fannie Mae since 2014, supporting the development and brok- ering of their innovative mortgage credit risk transfer transactions with reinsurers," said Joe Monaghan, Global Growth Leader for Aon's Reinsurance Solutions and Chief Executive Officer of Aon's Public Sector Partnership. "We are delighted to collaborate with Protecdiv as we continue to deliver on a shared commit- ment to greater equity, inclusion, and impact." "We are delighted that our work supports Fannie Mae's mission to improve diversity in housing finance and look forward to working with them to support the company's efforts in the future," said Kael Coleman, Protecdiv Founder and CEO. "Protecdiv's mission is to improve society through insurance, and we are accomplishing this through the fulfill- ment of the risk transfer and the supplier diversity goals of large U.S. businesses and public entities." With CIRT 2023-6, which became effec- tive May 1, 2023, Fannie Mae will retain risk for the first 130 basis points of loss on the $9.65 billion covered loan pool. If the $125 million retention layer is exhausted, 20 rein- surers will cover the next 405 basis points of loss on the pool, up to a maximum coverage of $391 million. With CIRT 2023-7, which became effec- tive May 1, 2023, Fannie Mae will retain risk for the first 155 basis points of loss on the $16.9 billion covered loan pool. If the $262 million retention layer is exhausted, 20 rein- surers will cover the next 235 basis points of loss on the pool, up to a maximum coverage of $398 million. Coverage for these deals is provided based on actual losses for a term of 12.5 years. Depending on the paydown of the insured pool and the principal amount of insured loans that become seriously delinquent, the aggregate coverage amount may be reduced at the one-year anniversary and each month thereafter. The coverage on these deals may be canceled by Fannie Mae at any time on or after the five-year anniversary of the effective date by paying a cancellation fee. From inception to date, Fannie Mae has acquired approximately $25.2 billion of insur- ance coverage on $850 billion of single-family loans through the CIRT program, measured at the time of issuance for both post-acquisi- tion and front-end transactions. As of March 31, 2023, approximately $1.17 trillion in out- standing UPB of loans in our single-family conventional guaranty book of business were included in a reference pool for a credit risk transfer transaction. TRIO OF BILLS INTRODUCED TO ADDRESS AFFORDABLE HOUSING R ep. Maxine Waters (D-CA) has reintroduced a legislative housing package aimed at tackling the affordable housing crisis, ending homelessness, and eliminating the racial wealth and homeownership gaps nationwide. "Protecdiv's mission is to improve society through insurance, and we are accomplishing this through the fulfillment of the risk transfer and the supplier diversity goals of large U.S. businesses and public entities." —Kael Coleman, Founder and CEO, Protecdiv