Connecticut Avenue Securities Investor Presentation
High Loan-to-value (HLTV) Refinance Option
The HLTV Refinance Option is a proactive approach that provides refinance opportunities to borrowers with existing
Fannie Mae mortgages who are making their mortgage payments on time but whose LTV ratio for a new mortgage loan
exceeds the maximum allowed for standard limited cash-out refinance options in the Selling Guide.
HLTV Program Eligibility Requirements
Existing mortgage loan is owned by Fannie Mae and
has an Origination Date on or after October 1, 2017
Mortgage loan is 15 months seasoned
Mortgage loan is current
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No 30-day mortgage delinquencies during the
most recent six-month period, and
no more than one 30-day delinquency in
months 7-12
Borrower can refinance under this option more than
once as long as all other requirements are met
Applicability to CAS
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Loans that are refinanced through the HLTV Refinance
Option will remain in the reference pool for their
respective CAS transactions
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Interest rate reductions will not constitute
Modification Events and will not impact CAS
investors
Principal reductions due to borrower
prepayments or lender incentives made under
the HLTV Program will be treated as partial
prepayments. Principal forgiveness is not part
of the HLTV Program
Loan reporting will reflect any changes to
terms made pursuant to the HLTV Program
Because these loans represent a replacement of existing risk, a “continuance of
coverage" approach for CAS deals provides for this risk to remain with existing
CAS investors.
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