In January 2009, SIFMA made revisions to its Good Delivery Guidelines which allow for certain outstanding Fannie Mae REMIC tranches that have been recombined to represent the original, underlying 30-year and 15-year, fixed-rate collateral cash flows to be eligible for TBA delivery.
Fannie Mae has long offered MBS market participants the ability to re-securitize certain outstanding REMIC tranches into pass-through securities. With this change to the SIFMA Good Delivery Guidelines, Fannie Mae can facilitate the re-securitization of outstanding tranches back to the original underlying pass-through collateral cash flows, through the issuance of a Mega security, thereby providing MBS market participants with enhanced liquidity and increased ease of operational management of outstanding REMIC securities.
There are a number of operational and other procedural considerations that govern Fannie Mae's re-securitization process of outstanding REMIC tranches into a Mega representing the original pass-through collateral cash flows.
These governing parameters include the following:
If potential MBS dealer counterparties wish to engage with Fannie Mae in potentially creating a REMIC-backed Mega or have questions about executing this type of transaction including future enhancements, they should contact Fannie Mae's MBS Structured Transactions Group directly at (202) 752-7875.
1 In addition to ZL and ZI prefix REMIC-backed Megas, Fannie Mae offers market participants the ability to create non-TBA eligible REMIC-backed Megas with the following prefixes: ZT, ZX, ZG, ZZ, ZO, ZP, ZQ and ZR.
Page last revised: 01/30/09