Fannie Mae MBS Structured Transactions Update: Four New REMIC Backed Mega Prefixes Available for Issuance after January 1, 2012

Fannie Mae MBS Structured Transactions Update: Four New REMIC Backed Mega Prefixes Available for Issuance after January 1, 2012

Fannie Mae has long offered MBS market participants the ability to re-securitize certain outstanding REMIC tranches into pass-through securities. To better serve our investors and increase the liquidity in the secondary mortgage market, Fannie Mae is introducing four new REMIC-Backed Mega prefixes. These prefixes will be available after January 1, 2012. For more information about the REMIC-Backed Mega program please see the related announcement.

The new prefixes are as follows:

ZC - Mega security collateralized by REMIC certificates which are directly or indirectly backed by Conventional Long-Term, Level-Payment Mortgages; Single-Family; maturing or due in 30 years or less. The pool is comprised entirely of mortgages with loan-to-value ratios greater than 105 percent and less than or equal to 125 percent.

ZE - Mega security collateralized by REMIC certificates which are directly or indirectly backed by Conventional Long-Term, Level-Payment Relocation Mortgages; Single-Family.

ZJ - Mega security collateralized by REMIC certificates which are directly or indirectly backed by Conventional Intermediate-Term, Level-Payment Mortgages; Single-Family; maturing or due in 15 years or less.

1. Pools backing underlying REMIC certificates contain jumbo-conforming loans with an origination date beginning March 1, 2008 through September 30, 2008; or,
2. More than 10 percent of each underlying pool's issue balance is comprised of any combination of:
   • loans originated on or after October 1, 2008 with an original principal balance up to the loan limit established by the Housing and Economic Recovery Act of 2008; or,
   • loans originated on or after October 1, 2008 with an original principal balance up to the loan limit established by the Economic Stimulus Act of 2008; or,
   • loans originated during 2009 with an original principal balance up to the loan limit established by the American Recovery and Reinvestment Act of 2009; or,
   • loans originated during 2010 with an original principal balance up to the loan limit established by Public Law (or P. L.) No. 111-88; or,
   • loans originated during 2011 with an original principal balance up to the loan limit established by Public Law (or P.L) No. 111-242; or,
3. Pools backing underlying REMIC certificates contain loans originated before October 1, 2008, with an original principal balance up to the loan limit established by the Housing and Economic Recovery Act of 2008.

ZN - Mega security collateralized by REMIC certificates which are directly or indirectly backed by Conventional Short-Term, Level-Payment Mortgages; Single-Family; maturing or due in 10 years or less.

Page originally published: 12/20/11