Fannie Mae Provides Updated Information Related to Multifamily Mortgage-Backed Securities Impacted by the Morgan Indictment

In the interest of continuing to provide transparency to investors in our Multifamily MBS and Multifamily REMIC securities (together, our "Guaranteed Multifamily Securities"), Fannie Mae is highlighting performance information on Guaranteed Multifamily Securities backed by one or more loans made to a Morgan Party ("Morgan Loans"). These loans are directly or indirectly connected to a mortgage fraud case as highlighted in this announcement, and certain loans were recently identified in a guilty plea by one of the parties to the case.

All Morgan Loans have been reported to us by their servicers as having been current as of the February 2019 payment, except for one loan from the population with a UPB of just over $18 million (The Trails at North Hills in Raleigh, NC) that has been voluntarily prepaid by the borrower per the terms of loan agreement. While the judicial process continues with respect to matters raised in the case, all MBS backed by Morgan Loans will continue to be restricted from being included in re-securitization transactions issued by Fannie Mae. Fannie Mae is identifying these loans solely because of their relationship to a Morgan Party.

While Fannie Mae will advance timely payments of principal and interest on each Multifamily Guaranteed Security, there can be no assurance that the matters referenced in the indictment or any future actions against a Morgan Party will not result in an early prepayment of one or more Morgan Loans. For prepayment risks associated with an investment in Guaranteed Multifamily Securities, investors should review “Risk Factors” in our Multifamily MBS Prospectuses and our Multifamily REMIC Prospectus.

For help with questions, market participants may contact the Fannie Mae Fixed-Income Investor Helpline at 1-800-2FANNIE or by e-mail.