Fannie Mae to Review Legacy CMOs Linked to LIBOR

November 26, 2019


Fannie Mae is in the process of reviewing a cohort of our floating rate and inverse floating rate CMO bonds issued prior to June 2014 whose interest rates are based on LIBOR. We are assessing the impact of the potential cessation of LIBOR in the event those bonds were to be contributed to a future REMIC. Until this review is completed, we do not anticipate including those legacy LIBOR bonds in our new REMIC issues. In addition, during this evaluation period, we will not re-REMIC any Freddie Mac issued bonds for which they are conducting a similar review. We are currently coordinating with our conservator and we expect to provide updated information in the near future regarding the treatment of these legacy LIBOR bonds, including the contribution of those bonds to future REMICs.

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.