Fannie Mae last week priced its second credit risk-sharing deal of 2014, the first to be backed by higher loan-to-value mortgages. The $1.6 billion note is the GSE’s third and largest transaction under its Connecticut Avenue Securities series since the Federal Housing Finance Agency ordered both Fannie and Freddie Mac to shrink the GSEs’ role in the U.S. housing market last year. In its latest offering – Series 2014-C02 – Fannie included reference loans with original LTV ratios of up to 97 percent. Previous C-deal offerings included reference loans with up to 80 percent original LTV ratios.