Fannie Mae Announces New Fee Structure for Certain Structured Transactions
Effective market-wide July 1, 2022, Fannie Mae will begin charging a new fixed upfront fee to create certain Supers® and real estate mortgage conduit (REMIC) securities that have Freddie Mac Uniform Mortgage-Backed Securities (UMBS) collateral underlying those Supers and REMIC securities. A fee of 50 basis points will apply solely to the portion of the Supers and REMICs that are Freddie Mac UMBS collateral. This fee is a one-time fee applying to Freddie Mac UMBS collateral that has never incurred such a commingling fee from Fannie Mae in the past.
This fee is designed to align with the cost of required capital for Fannie Mae guarantees of Freddie Mac UMBS collateral under the Enterprise Regulatory Capital Framework (ERCF). The fee is intended to be charged at the time of settlement of the security, though we reserve the right to charge this fee post-settlement if our final review of the collateral (post-settlement) demonstrates that commingled securities are present. The charge to create Fannie Mae Supers and REMIC securities that include solely Fannie Mae collateral remains unchanged, as no additional capital charge applies to such collateral.
Market participants who wish to create Supers or REMICs prior to July 1, 2022, that contain commingled collateral must contact the Structured Transactions desk at 202-752-7875 or [email protected] prior to submitting collateral.
For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.