General World News

Fannie Mae, Freddie Mac impose new fee for some securities transactions

Fannie Mae and Freddie Mac plan to charge a new 50 basis-point fee for certain structured-finance offerings that use co-mingled agency securities as the underlying collateral. 

The fee will apply to securities issued through structured-finance offerings known as Supers, and separately, real estate investment conduits (REMICs). Through these vehicles, the uniform mortgage-backed securities (UMBS) of one government-sponsored enterprise (GSE), such as Fannie Mae, are co-mingled with UMBS from the other, such as Freddie Mac, and serve as collateral for securities issued through the Supers or REMICs.  

Supers are a type of structured finance transaction that include UMBS securities from both GSEs that have the same details ⇒

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