Additional Information Regarding Fannie Mae’s Purchase of Certain FHA-Insured and VA-Guaranteed Mortgage Loans Backing Fannie Mae Multi-Class Structured Securities

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Additional Information Regarding Fannie Mae’s Purchase of Certain FHA-Insured and VA-Guaranteed Mortgage Loans Backing Fannie Mae Multi-Class Structured Securities

On March 16, 2011, Fannie Mae (FNMA/OTC) announced its intention to exercise its right to purchase from Fannie Mae REMIC and structured grantor trusts certain securitized FHA-insured and VA-guaranteed mortgage loans for which the seller has failed in its obligation to make required interest shortfall payments.  In August 2011, Fannie Mae exercised its right to purchase certain of the eligible mortgage loans from a number of the affected trusts. 

As outlined in previous announcements, Fannie Mae stated that it will release additional information on the purchase of the remaining eligible mortgage loans from affected trusts when available.  Fannie Mae has conducted an additional purchase of certain eligible mortgage loans, the result of which will be an unscheduled distribution of principal to investors in the related securities on the March 25, 2013, distribution date. 

Fannie Mae will release additional information on the anticipated purchase of the remaining eligible FHA-insured and VA-guaranteed loans from the Fannie Mae REMIC and structured grantor trusts when available. 

The following table lists the affected trusts as well as the related collateral group, approximate aggregate scheduled unpaid principal balance and approximate percent of loans in the related collateral group that will be included in Fannie Mae’s March 1 purchase of FHA-insured and VA-guaranteed mortgage loans. 

Fannie Mae Trusts Impacted by the Initial Purchase

Trust Number

Collateral Group

Approximate Aggregate UPB ($) as of February 1, 2013 of loans in buyout*

Approximate % of Group UPB

2001-T8

1

636,126

2%

2001-T10

 

6,718,293

6%

2001-T12

1

5,818,978

12%

2002-T1

 

6,471,738

11%

2002-T4

 

9,140,047

9%

2002-W3

 

2,807,680

4%

2002-W4

1

905,055

1%

2002-W7

1

8,710,421

17%

2002-W9

 

2,322,483

5%

2002-W10

1

13,191,249

25%

2003-W2

1

2

550,013

219,514

1%
0.2%

2003-W3

1
2

8,652,139

1,724,544

12%
7%

2003-W6

1
2
3
4
5

3,454,195

1,062,670

2,981,923

1,079,858

2,043,030

6%
2%

7%

3%

6%

2003-W8

1
2
3

507,859

1,308,721

2,068,165

1%
6%

11%

2003-W12

1

2

1,207,696

1,745,153

1%

2%

2003-W14

1

186,379

0.2%

2003-W15

1
2

1,624,110

4,834,141

13%
9%

2003-W17

 

2,037,206

2%

2003-W18

1

9,233,651

9%

2003-W19

1

793,284

1%

2004-T1

1

3,424,034

3%

2004-T2

1

11,592,643

9%

2004-T3

1

9,564,085

10%

2004-W1

1
2

3,335,337

5,694,062

5%
5%

2004-W9

1
2

1,084,890

887,242

3%
2%

2004-W11

1

4,385,631

4%

2004-W12

1

9,438,375

11%

* Actual amount purchased may differ as a result of February loan activity.

As a point of clarification, the customary four-month delinquency purchase option that applies to Fannie Mae single-family MBS trusts does not apply to multi-class structured securities backed solely by FHA-insured and VA-guaranteed mortgage loans.

For more information related to the features of Fannie Mae REMIC and Structured Grantor Trust Transactions Backed by FHA and VA Adjustable-Rate Single-Family Mortgage Groups, market participants may refer to the MBS Announcement dated June 21, 2010.

Inquiries regarding this Announcement should be directed to the Fannie Mae Fixed-Income Securities Helpline at (888) 266-3457 or fixedincome_marketing@fanniemae.com.

Certain statements in this announcement may be considered forward-looking statements within the meaning of the federal securities laws, including statements about Fannie Mae's plans to purchase loans from trusts and the effect of these purchases on the trusts. Factors that may cause actual results to differ materially from the expectations in these and other forward-looking statements include issues related to the seller of the loans, servicing and operational constraints, as well as those discussed in Fannie Mae’s Annual Report on Form 10-K for the year ended December 31, 2011 and Fannie Mae’s reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investors page of Fannie Mae’s Web site at www.fanniemae.com and the SEC's Web site at www.sec.gov.

Originally published: 03/04/13