Fannie Mae, Freddie Mac Single Security Initiative
Defining Issues | May 2019
KPMG summarizes the accounting implications related to mortgage- backed security exchanges under the Single Security Initiative.
KPMG’s Defining Issues discusses a Fannie Mae and Freddie Mac initiative resulting in a single mortgage-backed security, known as the uniform mortgage-backed security or UMBS. Investors will be allowed to exchange certain existing Freddie Mac securities for newly issued securities.
Applicability
Investors in Fannie Mae and Freddie Mac mortgage-backed securities (MBS)
Relevant dates
June 3, 2019 – Fannie Mae and Freddie Mac expected to begin issuing new UMBS
Key Impacts:
- Similar to current Fannie Mae and Freddie Mac securitization programs, the single security initiative will include three types of securitizations
- Investors can now exchange certain existing Freddie Mac securities for new securities in preparation for the full launch of UMBS in June 2019
- Investors need to consider accounting implications related to the exchange of such securities
Report contents
- Key impacts
- Features of the UMBS
- Exchange of Freddie Mac 45-day securities
- Accounting and other considerations
Download the document:
Fannie Mae, Freddie Mac single security initiative
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