The defeasance option gives the borrower, at the time the loan is made, an alternative to paying a prepayment premium when a property is released from the mortgage lien prior to maturity. If a borrower seeks to have the property released from the loan before maturity, the loan's defeasance provision requires that the original payment schedule be maintained through to maturity, by having the borrower purchase and substitute U.S. Treasuries or a Fannie Mae debt obligation.
The file below contains a list of pools that contain at least one loan that has defeased, by reference to Pool number and Fannie Mae Loan number. Only loans listed for a given pool have defeased. The pool may contain other loans that have not defeased. The date the loan defeased is noted next to the applicable Fannie Mae Loan number. The file will be updated on or before the 10th business day of each month and will list loans defeased through the end of the preceding month.
As a result of the defeasance election, the mortgage loan will no longer qualify as a "loan secured by an interest in real property" within the meaning of the Internal Revenue Code, as amended (the Code) or a "real-estate asset" within the meaning of the Code. Because of the tax related consequences of a defeasance election, investors should consult the applicable disclosure documents and a tax advisor for more specific information about evaluating an investment in the pool.
The Defeased Loans file below is presented as a text-formatted file (.TXT).