Fannie Mae adds REMIC structure to credit-risk transfer program

Fannie Mae has made changes to its Connecticut Avenue Securities credit-risk transfer program and now can sell bonds in a real estate mortgage investment conduit, or REMIC, structure as well as give investors recourse to underlying real estate. The REMIC issuance “checks all of those REIT boxes, and we think it’s important over the long-run to have a structure that works for them from a tax and regulatory standpoint,” says Fannie Mae’s Laurel Davis.

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