Fannie Mae Pauses Re-REMICs for Freddie Mac Legacy LIBOR CMOs that Used the "BBA Method"

September 18, 2020

Freddie Mac announced today that it is evaluating the potential resecuritization impact of LIBOR being declared unrepresentative prior to the permanent cessation of LIBOR on its legacy LIBOR-indexed CMOs that used the "BBA Method." For the detailed list of impacted securities, please see Freddie Mac's announcement. During Freddie Mac's evaluation period, Fannie Mae does not anticipate including this cohort of Freddie Mac-issued legacy securities in Fannie Mae re-REMICs.

Fannie Mae is not further reviewing any of its legacy LIBOR CMOs after announcing the resolution of its prior review in May 2020. All legacy CMOs issued by Fannie Mae and Freddie Mac are eligible for inclusion in Fannie Mae re-REMICs, except for the cohort of Freddie Mac-issued legacy securities described above.

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


This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae. Nothing in this announcement constitutes advice on the merits of buying or selling a particular investment. Any investment decision as to any purchase of securities referred to herein must be made solely on the basis of information contained in Fannie Mae's applicable Prospectus and the Prospectus Supplement and the related legal documentation, and no reliance may be placed on the completeness or accuracy of the information contained in this announcement.

You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.