SMBS Trust Agreements

Each Stripped Mortgage-Backed Security (SMBS) is created as a trust and is governed by a trust agreement.

The trust agreement -- along with its exhibits -- defines the terms of the deal, describes how the deal will be executed, and lists the deal's parameters or limitations.

SMBS Trust Agreements apply to the settlement date ranges listed below.

Each is presented as a Portable Document Format (PDF) file.

Omnibus Trust Supplement for Certain LIBOR Class Issuances

Effective May 27, 2020, Fannie Mae executed a new Omnibus Trust Supplement that generally applies to all Fannie Mae REMIC and other multiclass transactions issued prior to July 2013 (including all SMBS issuances prior to November 2016) that are backed by floating rate or reverse floating  rate securities with interest rates indexed to the London Interbank Offered Rate (LIBOR). The Omnibus Supplement amends the trust agreements for certain certificate issuances (as described in Section 1 of the Omnibus Supplement below) to clarify how interest rates on LIBOR securities will adjust in the event of a permanent cessation of the LIBOR Index (or a determination that LIBOR is no longer a representative benchmark rate). The language used in the Omnibus Supplement is substantially similar to the model language recommended by the Alternative Reference Rates Committee’s (ARRC) securitization working group. This language utilizes the Secured Overnight Funding Rate (SOFR), an index managed by the Federal Reserve Bank of New York (the regulator that convened the ARRC). This language will also make affected trusts consistent with the ARRC fallback language that Fannie Mae began using for its multiclass securities in June 2019.

Omnibus Trust Supplement (PDF)

Fannie Mae

Ginnie Mae

 

Last Revised: 05/28/20