Fannie Mae Introduces New Single-Family MBS Master Trust Agreement
WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today introduced a new Single-Family MBS Master Trust Agreement for both fixed-rate and adjustable-rate mortgages, which includes servicing clarifications for MBS mortgage loan administration. The document, which generally retains the basic approach of the current Trust Indentures, will be posted on www.fanniemae.com today.
Fannie Mae also announced to servicers certain servicing enhancements, consistent with the new Trust Agreement, that will generally apply to all mortgage loans in Fannie Mae MBS, whether the security is based on the current Trust Indentures or the Trust Agreement.
The new Trust Agreement accomplishes the following objectives:
- It incorporates key servicing requirements
- It more clearly describes Fannie Mae's roles as issuer, master servicer, guarantor, and trustee
- It clarifies the servicer's role as the "Direct Servicer"
- Over all, it better reflects current market practices
Although the company has not yet set an effective date for the new Trust Agreement, today's announcement provides servicers an opportunity to fully understand the servicing enhancements, consider how these clarifications will impact their business processes and determine how much time will be necessary to handle them. Fannie Mae expects to complete its plans and timelines for systems development work, and will announce an effective Trust Agreement date during the first quarter of 2007.Fannie Mae is a New York Stock Exchange Company. It operates pursuant to a federal charter. Fannie Mae has pledged through its American Dream Commitment to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. More information about Fannie Mae can be found on the Internet at www.fanniemae.com.