Fannie Mae Publishes MBS Impacts of Loans Delivered with Forbearance Prior to May 1, 2020

August 7, 2020

Effective May 1, 2020, LL-2020-06, Selling Loans in Forbearance Due to COVID-19, provides a flexibility allowing loans in forbearance due to a COVID-19 hardship that meet eligibility and delivery requirements to be delivered to Fannie Mae. Currently, this includes eligible loans with note dates of February 1, 2020 through August 31, 2020.

If a loan was delivered outside of the eligibility and delivery requirements defined in the corresponding Lender Letter, Fannie Mae, in alignment with Freddie Mac and at the direction of FHFA, may require the Seller, per our MBS Trust Agreement, to purchase the loan from the MBS Trust. A removal of a loan from the MBS for any reason results in a prepayment represented in the monthly MBS disclosure factors.

Fannie Mae is providing details on the prepayment impact resulting from the purchase of these loans from the MBS Trust due to the mis-delivery. The details include the impacted security identifier, the security total principal paydown, and the principal paydown attributed to the purchased loan. Over the next several months, we will continue to work with our Seller partners and perform additional analysis to identify any other ineligible loans in forbearance that were delivered outside of our eligibility and delivery requirements. Based on these assessments, we will update the details accordingly each month on Business Day 10 at 10am and the file will be available on our COVID-19 investor resources webpage.

As a reminder, Fannie Mae has a claim process for investors who believe they may have been financially harmed due to a unique incident or potential disclosure issue on a Fannie Mae issued security. The standard claims template can be found here.

You may also contact Fannie Mae's Investor Help Line at 1-800-232-6643, Option 3 or by e-mail in order to discuss next steps related to the claims process.

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.

Page last revised: 08/14/20