Fannie Mae Provides Additional Information on New MBS Disclosures; Announces User Enhancements to MBS Section of Corporate Web Site.Business Editors WASHINGTON--(BUSINESS WIRE)--Feb. 4, 2003 Fannie Mae Fannie Mae: see Federal National Mortgage Association. (NYSE NYSE See: New York Stock Exchange :FNM FNM Faith No More (band) FNM Fábrica Nacional de Motores (Brazilian truck/motor company)) FNM Free National Movement (Bahamas) FNM Foot and Mouth ), the nation's largest source of financing for home mortgages, today provided detailed information on new mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. (MBS See Mb/sec. MBS - mobile broadband services ) disclosures announced yesterday, and announced enhancements the company has recently made to the MBS section of its corporate Web site. "We are committed to providing our MBS investors, and others, with the highest degree of transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. , while protecting the liquidity and market efficiency they have come to value," said Fannie Mae Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Franklin Franklin, cities, United States Franklin. 1 City (1990 pop. 12,907), seat of Johnson co., S central Ind., inc. 1823. It is a farm trade center. Manufactures include auto parts, aluminum doors and windows, and copper panels. D. Raines. "The MBS market today is a critical component of the United States' housing finance system, one that is vital to fulfilling our mission of providing access to affordable homeownership," he said. Effective for April 2003 issuances, Fannie Mae will disclose new information about the mortgages in its MBS in the MBS Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. Supplements, including six additional elements of pool-level information. Following is a list of each of the elements and a detailed description of the information that will be provided for each. -- Original loan-to-value ratios - Fannie Mae will provide the relationship between the mortgage's unpaid principal balance (UPB) at the time of loan origination and a measure of the property's value at time of origination, expressed as a percentage ratio. This element will be disclosed as a weighted average and as a quartile distribution including a maximum and minimum value. -- Standardized credit scores of borrowers - Fannie Mae will include credit-scoring data (numerical values that rank a borrower according to his or her credit risk at a given point in time). This element will be disclosed as a weighted average for the pool and as a quartile distribution including a maximum and minimum value. Loans for which we do not have credit scores will be excluded from both the weighted average and quartile calculation and will be reported under a separate category titled "% UPB Without Credit Score." -- Loan purpose - Fannie Mae will disclose whether the loan was used to "purchase" the home or "refinance" an already purchased home. This element will be in a tabular format that discloses the number of loans in each category, the percentage each category comprises of the total pool, and the aggregate UPB for each category. -- Occupancy type - Fannie Mae will disclose how the borrower will use the property. The disclosure will identify whether the home is owner-occupied, an investment property or a second home. This element will be in a tabular format that discloses the number of loans in each category, the percentage each category comprises of the total pool, and the aggregate UPB for each category. -- Property type - Fannie Mae will describe the type of property by identifying the number of separate dwellings that comprise the single-family property. The disclosure will identify whether the property is a "one unit" property or a "2-4 unit" property. This element will be in a tabular format that discloses the number of loans in each category, the percentage each category comprises of the total pool, and the aggregate UPB for each category. -- Servicer - Fannie Mae will identify the entity that services the mortgages in the pool. The company currently identifies the seller of the loans, which usually is the originator, and will continue to identify the seller in addition to the servicer. In addition to the new disclosures described above, Fannie Mae will change the timing on a number of its existing disclosures. Specifically, the following elements, which Fannie Mae currently discloses post-settlement, will be disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the MBS Prospectus Supplements issued to investors prior to settlement. These elements are: distribution of loan coupons COUPONS. Those parts of a commercial instrument which are. to be cut, and which are evidence of something connected with the contract mentioned in the instrument. They are generally attached to certificates of loan, where the interest is payable at particular periods, and, when the within pool by quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. ; distribution of remaining terms to maturity within pool by quartile; weighted average loan age as well as distribution of loan age within pool by quartile; weighted average loan term as well as distribution of original loan terms within pool by quartile; distribution of original loan sizes within pool by quartile; seller identity; and a table of loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. years. A draft sample Fannie Mae MBS Prospectus Supplement, to illustrate how the new disclosures are likely to be displayed in the document, is attached. The Company noted that this is an early prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. and the format and content may be revised as Fannie Mae continues to engage in dialogue with lenders and investors about disclosure implementation. The Fannie Mae Base Prospectus will also be revised to reflect these changes and to provide investors specific and detailed information about the new disclosures. Web site Enhancements "Our new disclosures will build upon enhancements we have implemented for our MBS program over time," Raines said, "and we will continue to implement web site improvements this spring." In 2000, Fannie Mae began issuing quartile data on key information components for each MBS pool each month. Over the past few months, the Company has developed a new section called "Mortgage Security Information" on fanniemae.com, and added more historic content to the site. Fannie Mae has also made its MBS information easier to search and locate on the corporate Web site, http://www.fanniemae.com. Fannie Mae is a New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. company and the largest non-bank financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink shrink Vox populi noun A psychiatrist the nation's "homeownership gaps" through a $2 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. "American Dream American dream also American Dream n. An American ideal of a happy and successful life to which all may aspire: Commitment" to increase homeownership rates and serve 18 million targeted American families American Family is a photographic artwork exhibition by Renée Cox. See also
More information about Fannie Mae can be found on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.fanniemae.com. Style Usage: Fannie Mae's Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."
New/Adjusted
FANNIE MAE
MORTGAGE-BACKED SECURITIES PROGRAM
SUPPLEMENT TO PROSPECTUS DATED MAY 01, 2002
$12,345,678.00
ISSUE DATE SOMETIME IN 2003
SECURITY DESCRIPTION FNMS 06.0000 CL xxxxxx
6.0000 PERCENT PASS-THROUGH RATE
FANNIE MAE POOL NUMBER CL-xxxxxx
CUSIP 12345BT81
PRINCIPAL AND INTEREST PAYABLE ON THE 25TH OF EACH MONTH
BEGINNING ____________, 2003
POOL STATISTICS AS OF ISSUE DATE
SELLER ABC SELLER
SERVICER XYZ SERVICER
NUMBER OF MORTGAGE LOANS 50
AVERAGE LOAN SIZE $180,000.00
MATURITY DATE 09/01/2032
WEIGHTED AVERAGE COUPON RATE 6.5000%
WEIGHTED AVERAGE LOAN AGE 1 mo
WEIGHTED AVERAGE LOAN TERM 359 mo
WEIGHTED AVERAGE REMAINING MATURITY 358 mo
WEIGHTED AVERAGE LTV 80
WEIGHTED AVERAGE CREDIT SCORE 700
% UPB WITHOUT CREDIT SCORE 1.00%
% UPB WITH INTEREST ONLY FIRST DISTRIBUTION 0.00%
FANNIE MAE
MORTGAGE-BACKED SECURITIES PROGRAM
SUPPLEMENT TO PROSPECTUS DATED MAY 01, 2002
FANNIE MAE POOL NUMBER CL-xxxxxx
CUSIP 12345BT81
QUARTILE DISTRIBUTION
Credit
Loan Size Coupon Rate LTV Score
---------------- ----------- ------ ---------
Max $200,000.00 Max 7.2500 Max 95 Max 800
--- ------------ --- ------- --- -- --- ----
75% 180,000.00 75% 7.2500 75% 90 75% 700
--- ------------ --- ------- --- -- --- ----
50% 175,000.00 50% 7.0000 50% 80 50% 650
--- ------------ --- ------- --- -- --- ----
25% 150,000.00 25% 6.7500 25% 70 25% 640
--- ------------ --- ------- --- -- --- ----
Min 50,000.00 Min 6.5000 Min 40 Min 550
--- ------------ --- ------- --- -- --- ----
Loan Term Loan Age Remaining
(# of months) (# of months) Maturity
-------------------- ------------------- ----------------
Max 360 Max 7 Max 360
-------- ---------- --------- -------- ------- -------
75% 360 75% 1 75% 360
-------- ---------- --------- -------- ------- -------
50% 360 50% 0 50% 360
-------- ---------- --------- -------- ------- -------
25% 360 25% 0 25% 360
-------- ---------- --------- -------- ------- -------
Min 300 Min 0 Min 3
-------- ---------- --------- -------- ----------------
ORIGINATION YEAR
# of # of
Year loans % Aggregate UPB Year loans % Aggregate UPB
---------------------------------- ---------------------------------
2002 40 80.00 10,000,000.00 2001 10 20.00 2,345,678.00
---------------------------------- ---------------------------------
GEOGRAPHIC DISTRIBUTION
# #
of Aggregate of Aggregate
State loans % UPB State loans % UPB
--------------------------------- -----------------------------------
Florida 10 20.00 2,500,000.00 New Jersey 15 35.00 4,000,000.00
--------------------------------- -----------------------------------
New York 10 20.00 2,500,000.00 Pennsylvania 15 25.00 3,345,678.00
--------------------------------- -----------------------------------
FANNIE MAE
MORTGAGE-BACKED SECURITIES PROGRAM
SUPPLEMENT TO PROSPECTUS DATED MAY 01, 2002
FANNIE MAE POOL NUMBER CL-xxxxxx
CUSIP 12345BT81
LOAN PURPOSE
# Aggregate
Type of loans % UPB
----------------------------------------------------------------------
Purchase 5 10.00 $1,300,000.00
----------------------------------------------------------------------
Refinance 45 90.00 11,045,678.00
----------------------------------------------------------------------
PROPERTY TYPE
# # Aggregate
of Units of loans % UPB
----------------------------------------------------------------------
1 50 100.00 $12,345,678.00
----------------------------------------------------------------------
2 - 4 0 0.00
----------------------------------------------------------------------
OCCUPANCY TYPE
# Aggregate
Type of loans % UPB
----------------------------------------------------------------------
Principal Residence 50 100.00 $12,345,678,00
----------------------------------------------------------------------
Second Home 0 0.00 0.00
----------------------------------------------------------------------
Investor 0 0.00 0.00
----------------------------------------------------------------------
(NOTE: This is a sample MBS Prospectus Supplement. This is not actual data.) |
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