Fannie Mae Publishes List of Single-Family MBS that Experienced Earlier than Expected Modification Trial-Related Loan Buyouts

As announced on January 25, 2022, Fannie Mae recently discovered instances of modification-related delinquent loan removals prior to the completion of the necessary trial payments. Once a loan is removed from a security, such removal cannot be reversed. As a result of these buyouts, investors may have experienced earlier principal repayments and reduced interest payments from the associated MBS.

With this announcement, we are providing a list of impacted securities and the estimated financial impact associated with selected securities to assist in the claims process. As a reminder, Fannie Mae has a claims 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 claims form may be found here.

The supporting reference document outlines how Fannie Mae arrived at the financial impact associated with select securities. While most of these buyouts occurred in recent months, the analysis covers activity beginning in January 2021 when Fannie Mae updated its Single-Family MBS Prospectus to extend the timeframe for removal of delinquent mortgage loans from MBS from four consecutively missed monthly loan payments to twenty-four months delinquency.

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