Fannie Mae Intends To Purchase Certain Reperforming FHA-Insured, VA-Guaranteed Loans from Multi-Class Structured Securities

Fannie Mae is announcing its intention to exercise its right to purchase certain FHA-insured and VA-guaranteed mortgage loans that have been securitized into certain Fannie Mae multi-class structured securities.

Certain Fannie Mae multi-class structured securities backed by FHA-insured and VA-guaranteed mortgage loans allow the servicer to reduce the interest rate of any mortgage loan without removing the loan from the trust, provided that the seller funds any interest payment shortfall created by the interest rate reduction. Should the seller fail to fund the required amounts following an interest rate reduction, Fannie Mae has the option to purchase impacted mortgage loans from the related trust. Any such purchase will have the effect of a prepayment in full of the purchased mortgage loans.

The trusts listed below will be impacted by Fannie Mae's loan purchase. The precise timing and scope of the purchases has not yet been determined.

Fannie Mae will release additional information on the anticipated mortgage loan purchases once a final determination has been made.

For questions, please contact Fannie Mae's Investor Help Line at 1-800-232-6643 or by email.