Fannie Mae Purchases Certain FHA-Insured, VA-Guaranteed Mortgage Loans Backing Multi-Class Structured Securities
On January 15, 2019, Fannie Mae announced its intention to purchase certain FHA-insured and VA-guaranteed mortgage loans from certain Fannie Mae multi-class structured securities. As we previously stated, for certain Fannie Mae multi-class structured securities backed by FHA-insured and VA-guaranteed mortgage loans, the servicer is permitted to reduce the interest rate of any mortgage loan without removing the loan from the trust. Following an interest rate reduction, the seller is required to fund any interest payment shortfall created by the interest rate reduction. Where the seller fails to fund the required amounts following an interest rate reduction, Fannie Mae has the option to purchase impacted mortgage loans from the related trust. Any such purchase will have the effect of a prepayment in full of the purchased mortgage loans.
Fannie Mae has conducted a purchase of eligible mortgage loans from existing trusts, which will result in an unscheduled distribution of principal to investors in the related securities on the April 2019 distribution date.
The following table lists the affected trusts as well as the related collateral group, approximate aggregate scheduled unpaid principal balance, and approximate percentage of loans in the related collateral group that will be included in Fannie Mae’s purchase of FHA-insured and VA-guaranteed mortgage loans.
| Trust Number | Collateral Group | Approximate Aggregate UPB ($) as of March 2019 of loans in buyout* | Approximate % of Group UPB |
|---|---|---|---|
| 2001-T8 | 1 | 1,126,086 | 6.24% |
| 2 | 359,002 | 17.63% | |
| 2001-T10 | 3,876,771 | 8.95% | |
| 2001-T12 | 1 | 1,580,141 | 8.52% |
| 2 | 32,011 | 0.88% | |
| 2002-T1 | 2,943,390 | 13.16% | |
| 2002-W3 | 997,451 | 2.94% | |
| 2002-W4 | 1 | 1,957,670 | 5.42% |
| 2 | 523,772 | 10.45% | |
| 2002-T4 | 1,540,120 | 3.73% | |
| 2002-W7 | 1 | 1,825,451 | 9.88% |
| 2 | 127,202 | 5.28% | |
| 2002-W9 | 1,362,817 | 7.73% | |
| 2002-W10 | 410,831 | 3.49% | |
| 2003-W2 | 1 | 1,457,337 | 3.35% |
| 2 | 2,489,039 | 4.66% | |
| 2003-W3 | 1 | 833,410 | 3.57% |
| 2 | 581,686 | 5.56% | |
| 2003-W6 | 1 | 2,811,605 | 10.96% |
| 2 | 1,844,130 | 8.48% | |
| 3 | 2,183,098 | 13.39% | |
| 4 | 1,732,692 | 11.98% | |
| 5 | 1,300,121 | 8.47% | |
| 6 | 1,193,974 | 11.68% | |
| 2003-W8 | 1 | 6,298,146 | 19.10% |
| 2 | 1,396,195 | 17.45% | |
| 3 | 800,804 | 11.41% | |
| 4 | 484,407 | 5.67% | |
| 2003-W12 | 1 | 8,019,227 | 15.87% |
| 2 | 6,838,242 | 14.09% | |
| 3 | 619,082 | 9.92% | |
| 2003-W14 | 1 | 2,371,939 | 6.87% |
| 2 | 269,555 | 6.62% | |
| 2003-W15 | 1 | 899,391 | 22.60% |
| 2 | 3,346,442 | 14.91% | |
| 3 | 296,863 | 8.62% | |
| 2003-W17 | 7,348,100 | 14.85% | |
| 2003-W18 | 1 | 3,963,401 | 9.80% |
| 2 | 299,467 | 4.24% | |
| 2003-W19 | 1 | 7,545,198 | 20.96% |
| 2 | 231,627 | 6.11% | |
| 2004-W1 | 1 | 2,906,063 | 11.14% |
| 2 | 4,159,542 | 9.50% | |
| 3 | 168,802 | 4.30% | |
| 2004-T1 | 1 | 8,598,144 | 20.17% |
| 2 | 1,759,389 | 16.70% | |
| 2004-T2 | 1 | 2,962,570 | 6.16% |
| 2 | 983,505 | 18.40% | |
| 2004-T3 | 1 | 2,149,495 | 5.48% |
| 2 | 318,690 | 10.55% | |
| 2004-W9 | 1 | 1,370,392 | 8.08% |
| 2 | 1,290,779 | 7.79% | |
| 3 | 279,095 | 9.08% | |
| 2004-W11 | 1 | 3,785,040 | 7.70% |
| 2 | 644,779 | 12.62% | |
| 2004-W12 | 1 | 1,646,305 | 4.89% |
| 2 | 187,421 | 4.56% | |
| 2005-W1 | 1 | 1,216,038 | 2.73% |
| 2 | 41,235 | 1.39% | |
| Grand Total | 120,585,208 | 9.46% |
* Actual amount purchased may differ as a result of March loan activity
The customary four-month delinquency purchase option that applies to Fannie Mae single-family mortgage-backed securities (MBS) trusts does not apply to multi-class structured securities backed solely by FHA-insured and VA-guaranteed mortgage loans.
For questions, please contact Fannie Mae's Investor Help Line at 1-800-232-6643 or by email.