Draft Legal Documents for Multifamily MBS with a REMIC Tax Election Available for Review
Fannie Mae will begin making a Real Estate Mortgage Investment Conduit (REMIC) tax election on Multifamily Mortgage-Backed Securities (MBS) issued on or after January 1, 2021. In support of this change, we have updated the Multifamily MBS Prospectus templates and the Multifamily MBS Master Trust Agreement. We are publishing drafts of these updated documents, which include REMIC tax election language available for your review.
We recommend Multifamily MBS investors review the draft language and consult with their legal and/or tax advisors to understand potential implications related to the REMIC tax election.
Final versions of these legal documents will be published at the end of the year; however, the final REMIC tax election language is expected to be very similar to the draft language.
We published a Multifamily MBS REMIC Tax Election FAQ document to assist with market transition to the REMIC tax election. As a reminder, the REMIC tax election does not change the structure of loans backing our MBS or the MBS securities themselves. Our Multifamily MBS:
- will continue to be single-class mortgage pass-through certificates;
- will use the same prefixes; and,
- will provide investors with the same guaranteed payments of principal and interest as they do today.
If market participants have any questions related to the Multifamily MBS with a REMIC tax election, please contact the Fixed Income Helpline at 1-800-2FANNIE or by email.