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Basics of SMBS
Stripped Mortgage-Backed Securities (SMBS) are pass-through securities that are created by separating -- or stripping apart -- the principal and interest payments from the underlying mortgages that back standard Mortgage-Backed Securities, REMIC Certificates, SMBS Certificates issued from other trusts, and other mortgage-related assets. Often called SMBS or Strips, one or more classes of securities are then created:
- one may receive the interest cash flow, called IO -- or interest only;
- the other may receive the principal cash flow, called PO -- or principal only; and
- additional classes may receive different portions of principal and interest.
Most SMBS can be recombined at a future date and are commonly identified by a trust number and class (e.g., SMBS Trust 318, and class 1 or 2).
This section provides access to a wide range of SMBS information.
SMBS Structure provides information on the unique framework of the SMBS. Like REMICs, SMBS have restructured interest and principal payments into separately tradable securities. Redirecting cash flows on the underlying mortgages can create several classes.
Classes detail the SMBS classes and the effects of prepayment rates on the value and yields of the SMBS classes.
REMIC/SMBS
Tax Factors allows users to search for tax information on all Fannie Mae issued REMIC and SMBS securities.
Before You Invest in SMBS reminds potential investors to read the related SMBS disclosure documents and consult with their financial and tax advisors before deciding to invest in an SMBS.
SMBS Prospectuses and Related Documents
Fannie Mae publishes documents related to each SMBS. For a particular SMBS, the disclosure documents include:
Investors can obtain SMBS documents by calling 1-800-237-8627, faxing a request to (202) 752-4624, or by accessing certain SMBS documents online, including the following:
SMBS Prospectuses contain general information about SMBS issued during a particular prospectus' effective period. The information includes the nature of the guaranty, yield considerations, and the SMBS certificates. For example, the March 30, 2000, SMBS Prospectus (PDF) will relate to Fannie Mae SMBS pools issued on or after April 1, 2000, but before May 1, 2002 (i.e., the date that the next Fannie Mae SMBS Prospectus was released).
The SMBS Prospectus Supplements contain information about a specific SMBS. The information in the
SMBS Prospectus Supplement is specific to a particular transaction and is therefore more complete than the
information in the SMBS Prospectus. Prospectus Supplements are used to provide the details related to a
particular transaction and "supplement" but do not replace the information in the SMBS Prospectus.
Prospectus Supplements should be read together with the SMBS Prospectus and any other disclosure
documents referred to in the Prospectus Supplement. Prospectus Supplements are prepared for each issue
of SMBS certificates at the time of issue. Prior to 2008, Preliminary Data Statements were prepared
instead of Prospectus Supplements.
Final Data Statements include information about the assets that back the mortgage security as of the settlement date for most Fannie Mae SMBS transactions, including where applicable: the CUSIP numbers, pool numbers, issue dates, and balances on the SMBS settlement date.
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 SMBS Information
In addition, Fannie Mae provides information related to SMBS, 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, weighted-average maturities, and other data.
SMBS Monthly Class Factors files contain monthly payment information for Fannie Mae-issued SMBS classes.
The Recently Priced Transactions grid 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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