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Basics of Fannie Mae Grantor Trusts
Basics of Grantor Trusts
A grantor trust is a pass-through vehicle that, like a REMIC, issues separately traded classes. However, grantor trusts are treated differently than REMICs for federal income tax purposes. And, unlike a REMIC, the classes in grantor trusts cannot be "time tranched," which means each grantor trust class must receive its proportionate share of cash flow from the underlying collateral each month until such collateral is paid off. Each holder of a grantor trust certificate is treated for tax purposes as owning an undivided interest in the underlying collateral. The collateral providing the cash flow for Fannie Mae grantor trusts are mortgage related assets, which are specifically described in the trust's disclosure documents.
Fannie Mae Grantor Trusts
Fannie Mae has issued grantor trusts backed by various types of collateral, including
Single-Family and Multifamily MBS, REMIC securities and whole mortgage loans.
Similar to Megas and MBS, the grantor trust securitization vehicle combines the cash flows of the underlying collateral. Fannie Mae grantor trusts are typically issued
under the "T" series (for example "2005-T1" or "2004-T10")
Fannie Mae Grantor Trust Disclosure Documents
Fannie Mae disclosure documents for Grantor Trusts generally include the following:
a Grantor Trust Prospectus and
an Information Circular, if applicable.
The Grantor Trust Prospectus also incorporates by reference:
- the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), and
- certain reports and proxy statements filed with the SEC subsequent thereto,
or
- any other related document incorporated by reference.
The Grantor Trust Prospectus contains information about a specific grantor trust and its collateral, including full descriptions of its classes and how they will be paid, risk factors, yield and prepayment considerations, a summary of the trust agreement and the nature of the Fannie Mae guaranty. Sometimes a trust's prospectus has an associated prospectus supplement to update or give additional information about the related trust and is often attached to, and a part of, the trust's prospectus.
The Information Circular contains information about any underlying trust and its collateral, including full descriptions of the securities to be resecuritized and how they will be paid, risk factors, yield and prepayment considerations, a summary of the trust agreement and the nature of the Fannie Mae guaranty.
The Annual Report on Form 10-K describes the business and operations of Fannie Mae and our financial condition as of a specified date. It contains audited financial information and is filed with the SEC annually. Fannie Mae also files quarterly and current reports, among other documents, with the SEC.
Other Useful Grantor Trust Information
In addition, Fannie Mae provides information related to Grantor Trusts, including the following:
PoolTalk® provides information about Fannie Mae MBS, SMBS, Mega, REMIC, and Grantor Trust securities. PoolTalk® includes current and historical factors, CUSIP numbers, original issue balances, interest rates, issue and maturity dates, weighted-average coupons (WAC), weighted-average maturities (WAM), and other data.
The Recently Priced Transactions page shows recently priced transactions, including dealer, trust number, deal size, coupons, and settlement date.
For additional information or assistance, please call the Fannie Mae Fixed-Income Investor Helpline at 1-800-237-8627. The Helpline is staffed from 8:30 a.m. to 5:30 p.m., ET, every business day.
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Last Revised: June 16, 2009
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