Fannie Mae to make a REMIC Election for Multifamily MBS Issuances Beginning in January 2021
To align with the broader securitization market and its Single-Family business practices, Fannie Mae is planning to start making a Real Estate Mortgage Investment Conduit (REMIC) election for its fully guaranteed Multifamily Mortgage-Backed Securities (MBS) issued on or after January 1, 2021.
This election does not change the structure of loans backing our MBS or of the MBS securities. Our Multifamily MBS:
- will continue to be single class mortgage pass-through certificates;
- will provide investors with the same guaranteed payments of principal and interest as they do today; and,
- will use the same prefixes.
Holders of MBS with a REMIC election will be required to report income using the accrual method for tax purposes. Multifamily MBS investors should consult with their legal and/or tax advisors to understand any tax implications related to this election.
As we move closer to the implementation date, the Multifamily MBS Trust Agreement and Prospectuses will be updated to include language referencing the REMIC election. There are no other disclosure or reporting changes planned for this implementation.
If market participants have any questions related to the Multifamily MBS with a REMIC election, please contact the Fixed Income Helpline at 1-800-2FANNIE or by email.