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Mortgage Backed Securities ("MBS") LOANS don't qualify for HAMP - MBS LOANS - FANNIE MAJOR(R) benefits - see new bulletin Enhanced Disclosures Fannie Majors Mbsenger_0409

Mortgage Backed Securities ("MBS") LOANS don't qualify for HAMP - MBS LOANS - FANNIE MAJOR(R) benefits - see new bulletin Enhanced Disclosures Fannie Majors Mbsenger_0409

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Published by Mary Cochrane
Wells Fargo reveals in communication with consumer that MBS loans don't get HAMP modifications.

MBS Loans are individual investors certificate into pool in which for $250K minimum 'FANNIE MAJORS' the investor gets $1K loans first year issue.

In this bulletin Fannie Majors chaning rules again.
Wells Fargo reveals in communication with consumer that MBS loans don't get HAMP modifications.

MBS Loans are individual investors certificate into pool in which for $250K minimum 'FANNIE MAJORS' the investor gets $1K loans first year issue.

In this bulletin Fannie Majors chaning rules again.

More info:

Categories:Types, Business/Law
Published by: Mary Cochrane on Apr 16, 2013
Copyright:Attribution Non-commercial


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April 2009, Vol. 4, No.2
Updating the Investment Community on Fannie Mae Mortgage Products and Programs
© 2009 Fannie Mae. Trademarks of Fannie Mae.
BeginningMarch 1, 2009,enhanced disclosuredocumentation for Fannie Majors providesinvestors with moretimely and readilyavailable pool-levelinformation aboutthese securities andthe collateral thatbacks them.
Enhanced Disclosures for Fannie Majors
Both investors and mortgage lenders have appreciated the benecial
aspects of Fannie Majors since 1986, when Fannie Mae rst began
 issuing these securities. Fixed-income market participants value the pool
issuance sizes and potentially diversied pool characteristics facilitated by
the Fannie Majors program. Investors can purchase Fannie Majors in the
TBA market or in the specied pool market, as they do any Fannie Mae
mortgage-backed security (MBS). Beginning March 1, 2009, enhanceddisclosure documentation for Fannie Majors provides investors with moretimely and readily available pool-level information about these securitiesand the collateral that backs them on a real-time basis. We believe thiswill further contribute to the liquidity of Fannie Majors pools. This editionof 
reviews how Fannie Majors are created and describes theenhanced disclosures for these securities now available to investors. Anaddendum to this
discusses the Federal Housing Finance Agency’s (FHFA) 2009 loan limits which were revised pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA).
Description of Fannie Majors Pools
Fannie Majors are an identiable type of Fannie Mae MBS pools.
 Multiple lenders generally contribute the loans that back Fannie Majors.
Fannie Majors are available for groups of amortizing xed-rate (10-, 15-,
20-, 30- and 40-year) mortgages, 7-year balloons, certain adjustable-rate mortgages and interest-only mortgages. Each Fannie Majors pool is
comprised of a single mortgage type, identied by prex. The securities
include loans originated within one year of the pool’s issue date. Fannie
Majors can be identied by their pool numbers as shown in
Exhibit 1
Exhibit 1: Pool Number Blocks for Fannie Majors
Previously Issued Majors Pool Series Numbers
Current Major Pool Series Numbers
MA0000-MA9999MC0000-MC9999 (Majors Pools backed by Community Reinvestment Act (CRA) loans – thesecontain high concentrations of loans with household income levels that meet the low- and moderate-
income denitions of CRA and can potentially help originators and investors seeking to purchase a
CRA-targeted investment)
Benecial Characteristics of Fannie Majors for Investors
We have found in discussions with investors that while many market
participants are familiar with the benets of Fannie Mae’s large-sized
Mega securities, some are less knowledgeable about the characteristicsof Fannie Majors. Fannie Majors are generally larger-sized pools, have
• April 2009
potentially more geographically diversied collateral
than non-Fannie Majors pools and typically containmortgage loans delivered to Fannie Mae by multiplelenders.
Many investors appreciate the considerableissuance size of Fannie Majors. Fannie Majors poolsizes often exceed $200 million at-issuance andbetween April 2008 and March 2009, sevenFannie Majors have exceeded $1 billion at issuance.Because lenders from all over the United States canparticipate each month in creating a single FannieMajors issue, these securities are potentially advanta-geous for investors seeking this type of diversity froman MBS. When analyzing prepayment performance,investors can consider the geographic diversity of such pools.In addition, mortgage lenders derive value by secu-ritizing loans through Fannie Majors pools. FannieMajors allow mortgage lenders to receive the liquidity
benets afforded by MBS execution even if they donot have the volume of a specic loan type in a spe
cic month necessary to meet the minimum pool sizerequirements for Fannie Mae xed-rate single-issuer 
MBS. The minimum piece size lenders can deliver into Fannie Majors is $1,000.
Fannie Majors Issuance Volume
During the 12 months ending March 31, 2009,Fannie Mae issued $43 billion in Fannie Majors.
Of this total amount, almost all were xed-rate MBS
securities. Creation of ARM Majors was a modest
$15 million, as xed-rate mortgages dominated origi
-nation in the primary mortgage market during this timeperiod.
Exhibit 2
provides details of monthly FannieMajors issuance from April 2008 to March 2009.
How are Fannie Majors Created
Majors are created based on demand by FannieMae’s mortgage lender customers and pool numbersare generally posted several months prior to settle-ment. Fannie Majors pool numbers are typicallyposted in advance for current production coupon
30-year, 15-year, 20-year and 10-year xed-rate
mortgages. Fannie Mae often simultaneously cre-ates other pool numbers based on lender requests for Fannie Majors backed by loans with other terms and
characteristics such as 7-year balloons, 40-year xed
rate or adjustable-rate mortgages. Beginning on theday the Fannie Majors pool numbers are assigned,
lenders are able to deliver loans into those specic
Majors pools on any given business day until the sixth
business day prior to the end of the specic pool’s
settlement month.Lenders determine the settlement date(s) for amountsproportionate to their aggregate contribution of in-dividual mortgages to a Majors pool. Lenders cantransact an individual piece of a Fannie Majors uponsettlement of that piece. Settlement can occur on anybusiness day in the month of issuance. Most often,lenders choose to settle on the designated SIFMAsettlement dates for the appropriate class of security.
The rst day of each month is the ofcial issue date
for all Fannie Majors securities settling in that month.Investors can track the aggregate outstanding bal-ance updated on currently open Majors pools onwww.fanniemae.com by clicking “Mortgage-BackedSecurities,” then “Monthly Reporting Data,” then“MBS” and then “Fannie Majors.” After choosing thedesired product type from the page, the current ag-gregate outstanding balance for open pools is dis-
However, some Fannie Majors pools contain loans from a single lender.
Exhibit 2: Fanie Mae Majors Issuance (April 2008 through March 2009)
$ billions Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Total
30-year xed-rate by coupon4.0% $0.054 $0.843 $0.728 $1.64.5% $0.012 $0.016 $0.005 $0.001 $0.001 $0.001 $0.002 $0.002 $0.004 $0.366 $0.613 $1.539 $2.65.0% $0.285 $0.274 $0.172 $0.129 $0.072 $0.043 $0.118 $0.094 $0.074 $0.429 $0.459 $0.447 $2.65.5% $0.649 $0.845 $0.996 $1.776 $0.985 $0.788 $0.819 $0.474 $0.462 $0.198 $0.099 $0.051 $8.16.0% $0.485 $0.399 $0.486 $0.824 $1.489 $1.916 $1.000 $0.232 $0.151 $0.043 $0.048 $0.020 $7.1Other coupons total $0.237 $0.216 $0.173 $0.155 $0.361 $0.515 $0.234 $0.149 $0.095 $0.054 $0.032 $0.015 $2.2
30-year xed-rate total $1.7 $1.8 $1.8 $2.9 $2.9 $3.3 $2.2 $1.0 $0.8 $1.1 $2.1 $2.8 $24.3
Other than 30-year xed-rate total $2.409 $2.847 $2.041 $1.135 $1.165 $0.998 $0.918 $0.655 $0.642 $0.463 $1.691 $3.406 $18.4
Fixed-rate total $4.1 $4.6 $3.9 $4.0 $4.1 $4.3 $3.1 $1.6 $1.4 $1.6 $3.8 $6.2 $42.6
 ARMs total $0.000 $0.000 $0.003 $0.006 $0.005 $0.002 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.015
TOTAL $4.1 $4.6 $3.9 $4.0 $4.1 $4.3 $3.1 $1.6 $1.4 $1.6 $3.8 $6.2 $42.6
• April 2009
played by pool number and CUSIP. This informationis updated daily at approximately 8:00 a.m.
Exhibit 3
shows the data as displayed for 30-year xed-rate
Majors as of April 21, 2009. This information is also
available for 30-year xed-rate Majors and other Ma
- jors via Bloomberg by typing FNM <go> Fannie MaeProduct Info <go> MBS <go> then select the Majors
pools product type, for example, “30-year xed-rate
program.”For Fannie Majors issued before March 1, 2009, in-vestors have been able to gain access to pool infor-mation via PoolTalk®, Bloomberg and the prospectussupplement for each new Majors pool on the third tolast business day prior to the end of the month of is-suance.
Fannie Majors and High-Balance Loans
Delivery of high-balance loans into TBA-eligible Fan-nie Majors pools is permitted. However, as with other non-standard pool characteristics (such as reloca-
tion loans, cooperative properties and signicant
buydowns), the ten percent de minimis restriction, asproscribed by the American Securitization Forum, willbe applied to each discrete lender delivery (settle-ment) into a given Fannie Majors pool, rather thanat the pool level. High-balance loans can be pooledfor Fannie Majors pools with appropriate non-TBA-
eligible prexes as well, including CJ, CK, NJ, JI andJL prexes for xed-rate MBS and LD prex for ARM
MBS. There are no such de minimis restrictions onnon-TBA-eligible pools.Effective May 1, 2009, Fannie Mae will accept for delivery loans originated in 2009 using revised loanlimits set by FHFA pursuant to the American Recoveryand Reinvestment Act of 2009. A description of thesenew loan limits is contained in the addendum to this
Description of Enhanced MajorsDisclosures
Beginning with March 1, 2009 issuance, Fannie Maebegan providing market participants with enhancedpool-level disclosure documentation, including interimprospectus supplements for Fannie Majors on a dailyrolling basis as pieces of Majors pools close through-out the month. The interim prospectus supplementwill contain cumulative data to date for each pool.
The nal prospectus supplement for each security will
be available on the second business day prior to theend of the month of issuance. These enhancementsprovide investors with a more clear and timely sum-mary of the characteristics of loans backing FannieMajors. Before this enhanced disclosure was imple-mented, market participants had expressed that theywould value having more frequent updates about thepool characteristics of Fannie Majors before the poolswere closed.
A high-balance loan is a loan with an unpaid principal balance (UPB) at origination greater than the general loan limit and up to the high-cost limits set by FHFA pursuant tothe American Recovery and Reinvestment Act (ARRA). For one-unit single-family loans in the continental U.S. a high-cost loan would be a loan whose origination UPB is
between $417,000 and $729,750.
Exhibit 3: Fannie Mae 30-Year Fixed-Rate Majors (last pool added: 04/21/2009)
3.5% MA0094 31417YC88 12,790,620.004.0% MA0076 31417YCN5 149,410,540.00 MA0091 31417YC544.5% MA0065 31417YCB1 465,314,823.00 MA0092 31417YC625.0% MA0066 31417YCC9 83,720,768.00 MA0093 31417YC705.5% MA0079 31417YCR6 26,412,066.00
6.0% MA0080 31417YCS4 12,006,147.00
6.5% MA0081 31417YCT2 7,365,117.00
7.5%For more information, call the Capital Markets Sales Desk at 1-800-752-0257.
The aggregate balance of a Majors pool disclosed in the Daily Aggregate Balance column represents the aggregate balance of all outstanding FannieMae mortgage-backed securities for a Majors pool that have settled from the issue date through the close of business on the most recent business day.Because some of the related mortgage-backed securities may not yet be issued and outstanding, the aggregate securities balance for a Majors poolmay be less than the aggregate balance of the mortgage loans in the related loan pool.

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