Announcement Clarifying Certain Features of Fannie Mae REMIC and Structured Grantor Trust Transactions Backed by FHA and VA Adjustable-Rate Single-Family Mortgage Groups

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Announcement Clarifying Certain Features of Fannie Mae REMIC and Structured Grantor Trust Transactions Backed by FHA and VA Adjustable-Rate Single-Family Mortgage Groups

Fannie Mae REMIC and structured grantor trust certificates (Structured Trust Certificates) backed by FHA-insured and VA- guaranteed adjustable-rate residential mortgage loans (FHA ARM groups) are administered in accordance with FHA and VA guidelines, as applicable, and the related trust documentation. We wish to clarify certain servicing and payment features that apply to the FHA ARM groups and the related Structured Trust Certificates.

  1. The FHA and VA loss mitigation guidelines for resolving payment delinquencies and defaults require that if a loan servicer determines that a modification of an adjustable-rate loan is appropriate, the loan must be converted to a fixed-rate loan as part of the modification process. Accordingly, where loans in FHA ARM groups have been modified, those loans have been converted to fixed-rate loans. For the percentage of fixed-rate loans in each FHA ARM group as of May 1, 2010, please visit our PoolTalk® application on our website at www.fanniemae.com. As a result of the rate conversion feature described above, it is possible over time that fixed-rate loans will represent an increasing proportion of the loans in the related FHA ARM groups.

  2. To the extent required or permitted under the applicable FHA and VA guidelines, when an adjustable-rate loan converts to a fixed rate, any interest amounts that are due and unpaid (arrearages) generally are added to the outstanding principal balance of the loan at the time of the rate conversion. Interest accrues thereafter on the entire principal balance of the loan (including the arrearage amount), and the increased principal balance amortizes in full over the remaining life of the loan. In addition, at the time of the rate conversion, servicers generally are reimbursed for their prior advances to the trust of delinquent interest payments on account of the converted loan, with these reimbursements being made from monthly principal collections on the related FHA ARM group. Consequently, the rate of principal distributions on the Structured Trust Certificates may be delayed as a result of these servicer reimbursements.

  3. Most of the Structured Trust Certificates backed by FHA ARM groups accrue interest based on the weighted average of the net mortgage interest rates (that is, mortgage rates net of trust expenses) of the loans in the related FHA ARM group. These Structured Trust Certificates will continue to accrue and receive interest based on then current net mortgage interest rates of all loans in the FHA ARM group, including net mortgage interest rates derived from fixed interest rates of loans that have converted from adjustable rates to fixed rates.

  4. As a result of the servicing and payment features described above, monthly distributions on certificates collateralized by FHA ARM groups in the trusts listed below may have been greater than, or in some cases less than, the amounts that would have been distributed to holders if the related loans had not been converted to fixed rates.

  5. For more information, please visit our PoolTalk® application on our website at www.fanniemae.com. Also, holders of any Structured Trust Certificates backed by FHA ARM groups may contact Fannie Mae at 1-800-237-8627 with any questions or concerns regarding the servicing or payment considerations described in this announcement.

Fannie Mae Trust and CUSIP Designation

Trust Number

CUSIP Number

2000-T6

31358SR78

2001-29

313920GS3

2001-72

31392BHU3

2001-T1

31358S4Z1

2001-T8

313920UP3

2001-T12

31392A5P9

2001-W3

3139216F0
3139216G8
3139216H6
3139216J2
3139216K9
3139216L7
3139216M5
3139216N3

2002-14

31392CAZ7

2002-26

31392CR71
31392CR89

2002-33

31392DGW6
31392DGX4

2002-60

31392EWC0

2002-66

31392EX39

2002-90

31392GER2

2002-T6

31392CYH1

2002-T12

31392D7J5

2002-T16

31392FDE4

2002-T18

31392GFS9

2002-T19

31392GVT9

2002-W1

31392CMV3
31392CMW1
31392CMX9
31392CMY7
31392CMZ4
31392CNA8
31392CNB6

2002-W4

31392DUC4

2002-W6

31392DG63
31392DG71
31392DG89
31392DG97
31392DH21
31392DH39
31392DH47

2002-W7

31392DD90

2002-W8

31392DR38

2002-W10

31392ET59

2003-7

31392H2L6

2003-63

31393DTB7

2003-W2

31392JAE9

2003-W3

31392JYJ2

2003-W4

31393AR33
31393AR41
31393AR58
31393AR66
31393AR74
31393AR82
31393AR90

2003-W6

31393BW76

2003-W8

31393CX81

2003-W10

31393DUG4
31393DUH2
31393DUJ8
31393DUK5
31393DUL3
31393DUM1
31393DUN9

2003-W12

31393ELU1

2003-W14

31393E6M6

2003-W15

31393TC87

2003-W18

31393UNV1

2003-W19

31393UB28

2004-T1

31393XFZ5

2004-T2

31393X7K7

2004-T3

31393YV77

2004-W1

31393U4S9

2004-W2

31393XGS0
31393XGT8

2004-W8

31394ALP9

2004-W9

31394ACS3

2004-W11

31394AC46

2004-W12

31394A7H3

2004-W15

31394B2D5

2005-W1

31394CC42

2005-W3

31394FSD8

 

 

Last revised: 06/21/10