Supers and Megas

Overview

Supers

Fannie Mae's Supers® are single class, pass-through, TBA-eligible securities in which the underlying collateral are groups of existing UMBS^® and/or Supers. The securities that back Supers may be issued and guaranteed by either Fannie Mae or Freddie Mac. The cash flows from the underlying UMBS and/or Supers provide the cash flows for the Supers pool. As of June 3, 2019, all Megas with TBA-prefixes, regardless of issue date, are Supers.

Fannie Supers enable investors to accumulate pieces of similar, existing mortgage-backed securities to form a larger security with its own unique characteristics. Investors can consolidate small or paid-down pools in a Supers to help reduce administrative costs or form a Supers with certain characteristics, such as enhanced geographical diversity.

Megas

Fannie Megas® (Megas) are single-class pass-through, Non-TBA-eligible securities in which the underlying collateral are groups of existing Fannie Mae Non-TBA MBS and/or Fannie Mae Megas. The securities that back a Mega are issued and guaranteed by Fannie Mae. The cash flows from the underlying MBS and/or Megas provide the cash flows for the Mega pool. Unlike Supers, Megas can only be backed by Non-TBA Fannie Mae-only issued collateral. As of June 3, 2019, all Megas with TBA-prefixes, regardless of issue date, are Supers.

Similar to Supers, Megas enable investors to accumulate pieces of similar, existing mortgage-backed securities to form a larger security with its own unique characteristics. Investors can consolidate small or paid-down pools in a Mega to help reduce administrative costs or form a Mega with certain characteristics, such as enhanced geographical diversity.