Fannie Mae Purchases Certain FHA-Insured, VA-Guaranteed, and USDA-Guaranteed Mortgage Loans Backing Fannie Mae Multi-Class Structured Securities
Fannie Mae has conducted an additional purchase of certain eligible mortgage loans from certain existing trusts, which will result in an unscheduled distribution of principal to investors in the related securities on the March 2017 distribution date.
For certain Fannie Mae multi-class structured securities backed by FHA-insured, VA-guaranteed, and USDA-guaranteed government mortgage loans, the servicer is permitted to reduce the interest rate of any mortgage loan without removing the loan from the trust.
Following an interest rate reduction, the seller is required to fund any interest payment shortfall created by the interest rate reduction. Where the seller fails to fund the required amounts following an interest rate reduction, Fannie Mae has the option to purchase impacted mortgage loans from the related trust. Any such purchase will have the effect of a prepayment in full of the purchased mortgage loans.
The following table lists the affected trusts as well as the related collateral group, approximate aggregate scheduled unpaid principal balance and approximate percentage of loans in the related collateral group that will be included in Fannie Mae’s purchase of FHA-insured, VA-guaranteed, and USDA-guaranteed mortgage loans.
| Trust Number | Collateral Group | Approximate Aggregate UPB ($) as of February 1, 2017 of loans in buyout* | Approximate % of Group UPB |
|---|---|---|---|
| 2001-T8 | 1 | $59,757 | 0.25% |
| 2001-T10 | $3,560,717 | 5.72% | |
| 2001-T12 |
1 2 |
$2,827,760 $902,905 |
10.49% 15.43% |
| 2002-T1 | $2,511,711 | 7.48% | |
| 2002-T4 | $4,836,395 | 8.06% | |
| 2002-W3 | $968,714 | 2.14% | |
| 2002-W4 |
1 2 |
$936,526 $357,516 |
1.98% 5.21% |
| 2002-W7 |
1 2 |
$4,372,656 $296,303 |
15.39% 8.42% |
| 2002-W9 | $1,849,872 | 7.44% | |
| 2002-W10 |
1 2 |
$6,595,970 $938,525 |
27.60% 31.94% |
| 2003-W2 | 1 2 |
$443,510 $440,184 |
0.78% 0.65% |
| 2003-W3 |
1 2 |
$4,145,195 $420,922 |
10.73% 3.10% |
| 2003-W6 |
1 2 3 4 5 6 |
$1,631,286 $784,337 $1,080,566 $518,467 $783,023 $445,347 |
4.75% 2.90% 4.81% 2.61% 3.77% 3.09% |
| 2003-W8 |
1 2 3 4 |
$861,115 $809,252 $528,404 $953,147 |
1.99% 6.72% 5.31% 7.90% |
| 2003-W12 |
1 2 3 |
$815,137 $868,399 $100,162 |
1.23% 1.37% 1.20% |
| 2003-W14 | 1 | $847,355 | 1.84% |
| 2003-W15 |
1 2 3 |
$801,817 $2,649,129 $1,249,036 |
13.73% 8.28% 23.36% |
| 2003-W17 | $754,372 | 1.15% | |
| 2003-W18 |
1 2 |
$4,655,677 $1,958,572 |
8.37% 17.07% |
| 2003-W19 |
1 2 |
$532,204 $451,328 |
1.14% 7.50% |
| 2004-T1 |
1 2 |
$2,526,844 $289,982 |
4.36% 2.14% |
| 2004-T2 |
1 2 |
$5,494,064 $619,434 |
7.94% 7.97% |
| 2004-T3 |
1 2 |
$6,550,205 $348,764 |
11.85% 7.95% |
| 2004-W1 |
1 2 3 |
$4,828,944 $3,003,359 $255,054 |
12.30% 5.05% 4.35% |
| 2004-W9 |
1 2 3 |
$837,617 $481,597 $63,893 |
3.68% 2.19% 1.44% |
| 2004-W11 |
1 2 |
$1,716,030 $446,588 |
2.63% 6.06% |
| 2004-W12 |
1 2 |
$4,171,176 $656,462 |
8.59% 11.13% |
* Actual amount purchased may differ as a result of February loan activity.
The customary four-month delinquency purchase option that applies to Fannie Mae single-family mortgage-backed securities (MBS) trusts does not apply to multi-class structured securities backed solely by FHA-insured, VA-guaranteed and USDA-guaranteed mortgage loans.
Inquiries regarding this Announcement should be directed to the Fannie Mae Fixed-Income Securities Helpline at (800) 232-6643, Option 2 or via email.
Certain statements in this announcement may be considered forward-looking statements within the meaning of the federal securities laws, including statements about Fannie Mae's plans to purchase loans from trusts and the effect of these purchases on the trusts. Factors that may cause actual results to differ materially from the expectations in these and other forward-looking statements include issues related to the seller of the loans, servicing and operational constraints, as well as those discussed in Fannie Mae’s Annual Report on Form 10-K for the year ended December 31, 2016 and Fannie Mae’s reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investors page of Fannie Mae’s Web site at www.fanniemae.com and the SEC's Web site at www.sec.gov.