Statement by Tom Lund Executive Vice President - Single-Family Mortgage Business on FDIC Announcement
10/10 02:59 PM
WASHINGTON, Oct. 10 /PRNewswire-FirstCall/ -- With the FDIC's announcement today, Fannie Mae will begin to allow institutions servicing our mortgage-backed securities (MBS) to continue to hold the principal and interest payments from loans in our MBS in eligible depository institutions, thereby freeing additional liquidity for these institutions and the financial system. Recently, Fannie Mae exercised its option to collect the principal and interest on its MBS from certain institutions on a daily basis and place the payments in a trust account to safeguard the funds on behalf of the MBS holders. Given that the FDIC's new policy effectively safeguards these principal and interest payments, we believe collecting the payments daily and holding them in trust may no longer be necessary. We will begin working with our customers to effectuate this change, consistent with our trust agreements and servicing guide.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.
SOURCE Fannie Mae
