Bulk Deliveries Now Eligible for Resecuritization and Additional Multifamily Resecuritization Requirements

Fannie Mae is now permitting the resecuritization of certain Multifamily Mortgage-Backed Securities (MBS) backed by mortgage loans originated via Bulk Delivery. A list of active Bulk Delivery MBS and their resecuritization eligibility status is available here, including designations of "Eligible", "Ineligible", or "Eligible if 100% Contributed." For MBS with an eligibility status of "Eligible if 100% Contributed," 100% of the outstanding unpaid principal (UPB) balance of the MBS must be contributed to the resecuritization for any portion to be included.

An upcoming DUS Disclose® release will reflect this eligibility status as well as indicate the status for newly issued securities. The system will be down to implement these enhancements beginning Friday, July 24 at 8:00 PM EDT to approximately 1:00 PM EDT Sunday, July 26.

This additional flexibility follows Fannie Mae's announcement permitting the resecuritization of Credit Facility MBS. For market participants considering the resecuritization of Bulk Delivery MBS and Credit Facility MBS, please note:

Resecuritization into Megas

If one or more Credit Facility MBS or Bulk Delivery MBS with an eligibility status of "Eligible if 100% Contributed" are contributed to a Fannie Mega®, then 100% of the UPB of that Mega must be contributed to any resecuritization of interests in that Mega.  However, if all Credit Facility MBS and Bulk Delivery MBS contributed to a Mega have an eligibility status of "Eligible," any portion of the Mega may be contributed to a resecuritization.

Resecuritization into REMICs

Once a REMIC (including Fannie Mae GeMS™ and ACES®) owns an interest in any MBS or Mega, portions of that REMIC may be resecuritized without regard to the contribution requirement applicable to any underlying MBS.

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