Fannie Mae Releases MCAS Resources for European Union Institutional Investors
Fannie Mae's new Resources for EU Investors webpage is specifically dedicated to helping institutional investors located in the United Kingdom and European Union ("EU") comply with their due diligence obligations when investing in Fannie Mae's Multifamily Connecticut Avenue Securities™ (MCAS) deals.
Regulation (EU) 2017/2402, which took effect on January 1, 2019, imposes certain enhanced due diligence and reporting obligations on EU-based institutional investors. Our new webpage contains information and resources that Fannie Mae already makes publicly available for all investors but organizes them in an easy-to-navigate format according to the applicable sections of the EU regulation. The webpage also contains a file that will help investors with their reporting obligations by mapping MCAS data fields from the CREFC aligned Investor Reporting Package to the European Securities and Markets Authority (ESMA) templates for commercial real estate. In addition, we have posted a risk retention letter on the transaction page for each MCAS deal that we have issued to date confirming that we have held and will continue to hold a material net economic interest of no less than 5% in each transaction in the form required under the EU securitization regulation.
Fannie Mae's MCAS program launched in October 2019. It complements our Delegated Underwriting and Servicing (DUS®) program that has been sharing risk with lenders for over 30 years and the Multifamily Credit Insurance Risk Transfer™ program, our other back-end CRT program that launched in 2016 to share risk with reinsurer partners. Since program inception through Q1 2020, Fannie Mae has brought two MCAS deals to market, issued about $900 million in notes, and transferred a portion of the credit risk to private investors on more than $17 billion in multifamily mortgage loans.
We welcome feedback on our resources. Please reach out to the Fannie Mae Investor Help Line at 1-800-232-6643 or by e-mail with feedback or questions.
EU Institutional Investors should note that Fannie Mae makes no representation and provides no assurance about the suitability or completeness of the published information in relation to any investor due diligence requirements under Article 5 or otherwise. EU Institutional Investors must independently verify and assess the published information with respect to the suitability or completeness required for purposes of such investors’ compliance with any applicable due diligence framework. EU Institutional Investors should consult with their own legal, accounting, and other advisors regarding the sufficiency of this information for their purposes.