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Basics of REMICs
A Real Estate Mortgage Investment Conduit (REMIC) is a type of multiclass mortgage-related security in which interest and principal payments from mortgages are structured into separately traded securities. Introduced in the 1980s, REMICs further enhanced the mortgage securities market with their increased efficiency.
REMICs direct the cash flow from the underlying mortgage-related collateral into separately traded securities called classes. These classes are distinguished by their sensitivity to the prepayment risk of the underlying mortgage-related collateral. Therefore, they may be more or less sensitive to prepayment risk, bear different interest rates, and have various average lives and final maturities.
This section further details these securities:
The Fannie Mae Benchmark
REMICs page describes details of the program,
including key features, issue size, pricing
mechanics, and underlying characteristics.
The REMIC
Structure page describes the basic structure
of a REMIC security, as well as Fannie Mae's
senior/subordinated REMIC security, Wisconsin
Avenue Securities (WAS).
The Fannie Mae REMIC Guaranty page discusses Fannie Mae as a guarantor of REMIC securities.
The Classes page describes the types of REMIC classes.
REMIC/SMBS
Tax Factors allows users to search for tax information on all Fannie Mae issued REMIC and SMBS securities.
The REMICs & Your Taxes page details the tax issues for REMICs.
The Before You Invest in REMICs page reminds potential investors to read the related REMIC disclosure documents and consult with their financial and tax advisors before deciding to invest in a REMIC.
Fannie Mae REMICs
Collateral for REMICs includes mortgage loans that have been pooled together as Fannie Mae MBS (single-family or multifamily), stripped mortgage-backed securities (SMBS), classes from other REMICs, and whole loans (single-family or multifamily).
Fannie Mae REMIC Disclosure Documents
Fannie Mae disclosure documents for REMICs generally include the following:
- For REMICs backed by mortgage-related securities, the REMIC Prospectus Supplement and its related REMIC Base Prospectus,
- For REMICs backed by mortgage loans, the transaction REMIC Prospectus or Prospectus Supplement and REMIC Base Prospectus,
- Final Data Statements,
- the most recent Annual Report on Form 10-K (PDF) filed with the Securities and Exchange Commission (SEC), and
- certain reports filed with the SEC subsequent thereto, or
- any other related document incorporated by reference.
Investors can obtain REMIC disclosure documents by calling 1-800-237-8627, faxing a request to (202) 752-4624, or by accessing certain REMIC documents online, including the following:
The REMIC Prospectus Supplement contains information about a specific REMIC trust, including the description of the classes within that REMIC, its collateral, the rules for distributing the collateral's cash flow, and risk factors. The information in the REMIC Prospectus Supplement is specific to a particular trust and is therefore more complete than the information in the REMIC Base prospectus. Prospectus Supplements are used to provide the details related to a particular transaction and "supplement" but do not replace the information in the REMIC Base Prospectus. Prospectus Supplements should be read together with the REMIC Base Prospectus and any other disclosure documents referred to in the Prospectus Supplement. REMIC Prospectus Supplements are identified by a year and a trust number. For example, REMIC 2001-010 identifies REMIC deal 10 issued in 2001.
The REMIC Base Prospectus contains basic information about REMICs, including the nature of the guaranty, yield considerations, class definitions, and abbreviations. It is referred to as a "base" prospectus because information in the prospectus supplement is based on, or builds upon, the information in the base prospectus.
In some instances, REMICs backed by mortgage loans (rather than mortgage-related securities), a transaction-specific REMIC Prospectus is created. A transaction specific prospectus combines into a single document the disclosure information for a particular transaction.
The Final Data Statements documents include information about the assets that back the mortgage security as of the settlement date for most Fannie Mae REMIC transactions, including where applicable, the CUSIP numbers, pool numbers, issue dates, and balances on the REMIC settlement date.
The Annual Report on Form 10-K (PDF) 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 REMIC Information
In addition, Fannie Mae provides information related to REMICs, 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 REMIC CUSIPs files contain lists of classes and their related CUSIP numbers. Class CUSIP numbers usually appear on the cover page of the REMIC Prospectus Supplement for REMICs backed by mortgage-related securities and on the cover of the transaction specific Prospectus, for REMICs backed by mortgage loans.
The Monthly Floater Resets page contains monthly information for all adjustable-rate, or "floating rate," REMIC classes. They are posted on or about the interest determination date for the relevant classes.
The Recently Priced Transactions page shows recently priced transactions, including dealer, trust number, deal size, coupons, and settlement date.
The Multifamily
Securities Locator Service provides a
central location for obtaining multifamily
MBS disclosure information. Users can locate
and download information on multifamily securities,
create a portfolio to track specific securities,
view reports of loan activity, and choose
to receive e-mail updates on changes to pools.
Multifamily Assured Schedule Payment Trust™ (MAST™) contains links to the prospectus supplements for our Multifamily Assured Schedule Payment Trust Securities.
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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