SIFMA TBA Guidelines Steering Committee Voting Results move us forward for Connecticut Avenue Securities REMIC Structure
SIFMA’s TBA Guidelines Steering Committee helped us to reach a significant milestone by voting on Fannie Mae’s proposal to change its Connecticut Avenue Securities™ (CAS) structure to enable us to issue future CAS deals as notes that qualify as a Real Estate Mortgage Investment Conduits (REMICs). SIFMA recently released a statement that it has "not identified any issues that would impair the To-Be-Announced (TBA) eligibility of MBS under" the CAS REMIC structure. This vote provides assurance to MBS market participants that the proposed change will not adversely impact the TBA MBS market.
We continue to move forward to finalize steps in enhancing our CAS program. After those steps are completed and upon receipt of FHFA approval, we plan to announce an update to our Single-Family Master Trust Agreement and Single-Family MBS Prospectus that will enable the issuance of Connecticut Avenue Securities REMIC™ structures on a go-forward basis.
On May 8, 2017, Fannie Mae announced a proposal to enhance its CAS credit risk transfer program by structuring future CAS offerings as notes issued by trusts that qualify as REMICs. Fannie Mae would facilitate this change by making a REMIC tax election on a majority of single-family loans that we acquire and guarantee. This enhancement to our CAS program is designed to promote the continued growth of the market by expanding the potential investor base for these securities, making the program more attractive to Real Estate Investment Trust (REIT) investors, as well as certain other investors, and limiting exposure to investors from Fannie Mae counterparty risk.
Market participants may contact the Fannie Mae Investor Help Line at 1-800-2FANNIE or by email with any questions. For more information, please review the following related links:
- May 8, 2017 original announcement
- January 23, 2018 updated announcement
- Updated Fact Sheet
- Updated FAQs
- SIFMA TBA Guidelines Steering Committee Agenda from March 28th, 2018
- SIFMA TBA Guidelines Steering Committee Meeting Minutes from March 28th, 2018
- SIFMA TBA Guidelines Steering Committee Voting Results from March 28th, 2018