Freddie Mac · OTC:FMCC
Freddie Mac — Investor Presentation (2016)
19 slides from Freddie Mac's investor presentation, 2016
Slide 1: Focus Group Discussions: Lenders/Sellers/Servicers and Investors
Focus Group Discussions Lenders/Sellers/Servicers and Investors Summer 2016
Slide 2: Table of Contents
Table of Contents Single Security Features……………………………………………………………………………………………………………….3 Impact to Lenders/Sellers/Servicers………………………………….…………………………………………………………6 Impact to Investors……………………………………………………………………………………………………………………...9 Disclosures………………………………………………………………………………………………………………………….……..11 Resecur
Slide 3: Single Security overview and purpose
The Single Security is a mortgage-backed security with common features and disclosures, each of which will be issued and guaranteed by Fannie Mae or Freddie Mac. Products in scope are fixed- rate 30-year, 20-year, 15-year and 10-year securities. The Single Security will be called the “Uniform MBS” o
Slide 4: Single Security features
Security Issuer and Each Single Security will be issued and guaranteed by either Fannie Mae or Freddie Mac Guarantee Structure Common Features Single Securities issued by either Enterprise will have key common features that largely align to Fannie Mae securities including the 55-day payment delay, a
Slide 5: The Common Securitization Platform
The Common Securitization Platform The CSP is a new single-family securitization technology and operational platform to be used by Fannie Mae and Freddie Mac to facilitate the back office operations relating to the issuance, disclosure and administration of single-family mortgage securities. CSS is
Slide 6: What Does the Single Security Mean to Me? Lenders/Sellers
What Does the Single Security Mean to Me? Lenders/Sellers Fannie Mae is the Issuer, Trustee, and Guarantor of its Single Security Freddie Mac is the Issuer, Trustee, and Guarantor of its Single Security Lenders/Sellers will still interact directly with Fannie Mae or Freddie Mac -- and will contact t
Slide 7: Impact to Selling and Issuance Process
Single Security -- Impact to Selling and Issuance Process Current State: Pre-Single Security Loan Delivery: Security Issuance Enterprise Enterprise Business Enterprise Federal Settlement Loan Delivery Data Portal/ Edits and Reserve Services Wire Security Loan Checks Bank (ESS) Delivery Sellers Desig
Slide 8: Impact to Loan Servicing
Single Security -- Impact to Loan Servicing Current State: Pre-Single Security Loan Servicing Enterprise Enterprise Bond Federal Servicing Administration Loan Level Reporting Data Engine and Disclosure Reserve Bank Investor Payment Services Servicers Investors Post State: Single Security Go Live Loa
Slide 9: What Does the Single Security Mean to Me? Investors and Vendors
What does the Single Security Mean to Me? Investors and Their Vendors Fannie Mae is the Issuer, Trustee, and Guarantor of its Single Security Freddie Mac is the Issuer, Trustee, and Guarantor of its Single Security Investors will receive payments in the same manner they do today Payment Day will be
Slide 10: Impact to Investor Payments
Single Security -- Impact to Investor Payments Current State: Pre-Single Security Enterprise Enterprise Bond Federal Servicing Administration Loan Level Reporting Data Engine and Disclosure Reserve Bank Investor Payment Services Servicers Investors Post State: Single Security Go Live Enterprise Bond
Slide 11: Impact to Disclosure
Single Security -- Impact to Disclosure Current State: Pre-Single Security Enterprise Disclosure Enterprise Loan Platform Enterprise Delivery/ (FannieMae.com Disclosure Loan Level Delivery Data/ Servicing or Monthly Reporting Data Services FreddieMac.com Engine or Business to Business Portal) Servic
Slide 12: Impact to Disclosure (continued)
Single Security -- Impact to Disclosure (continued) Disclosures for Fannie Mae-issued Single Security and Freddie Mac-issued Single Security will be aligned File format will be flat file - disclosure specifications were made public in July 2016 Freddie Mac will adopt the Single Security Disclosure f
Slide 13: Single Security Identifiers
Single Security Identifiers Freddie Mac and Fannie Mae will share the FICC TBA identifier of “01F” for Single Security (for trade netting). Freddie Mac will continue to use the FICC TBA identifier of “02R” for legacy 45-day delay Prefix/pool identifiers and approach will be transparent – Ticker disc
Slide 14: Pre- and Post-Single Security Resecuritizations
Pre- and Post-Single Security Resecuritizations* Pre-Single Security Enterprise Resecuritizations •Fannie Mae MBS and/or Fannie Mae •Fannie Mae Megas, MBS and/or Fannie Mae •Mega Pools Megas •Fannie Mae REMICs REMICs •Freddie Mac PCs and/or Freddie Mac •Freddie Mac PCs, Giants and/or Freddie Mac •Gi
Slide 15: Freddie Mac Legacy PC Exchange Overview
Freddie Mac Legacy PC Exchange Overview Freddie Mac will offer an exchange that will be open to investors in legacy 45-day PCs. There will be no fee to exchange. All fixed-rate PCs that are not 100% committed to Resecuritization can be exchanged. Holders of TBA securities will receive 55-day Single
Slide 16: Single Security Considerations
Single Security Considerations Transition into the market Freddie Mac PC Exchange (Accounting and tax treatment) Updated TBA good delivery guidelines Dollar Rolls Two TBA markets to one Legal and regulatory implications Hedging and best execution practices Nomenclature First-level securities: Unifor
Slide 17: Market Activity: Sample Transition Dates and Relative Timing
Single Security -- Sample Transition Dates & Relative Timing T-150D: Begin Mirror T-XXD: 1st Exchange issuance request/initiation T-150D: Exchange T-45D: UMBS guarantor disclosures available contracts available T-30D: 1st MultiLender UMBS pool set-up / open for delivery T-105D: UMBS forward trading
Slide 18: Additional Resources
Additional Resources Fannie Mae Website: www.fanniemae.com/singlesecurity Freddie Mac Website: www.freddiemac.com/single_security Federal Housing Finance Agency (FHFA) Website: http://www.fhfa.gov/PolicyProgramsResearch/Policy/Pages/Single-Security.aspx 18
Slide 19: Disclaimer
Disclaimer Copyright© 2016 by Fannie Mae. No Offer or Solicitation Regarding Securities. This document is for general information purposes only. No part of this document may be duplicated, reproduced, distributed or displayed in public in any manner or by any means without the written permission of