Fannie Mae, Freddie Mac Discuss Securities Offerings With NAREIT Mortgage REIT Council

06/19/2017

On June 15, NAREIT’s Mortgage REIT Council hosted a conference call for council members with senior executives from Freddie Mac and Fannie Mae to discuss proposed enhancements to their credit risk-transfer (CRT) securities offerings.

The discussion covered enhancements specifically aimed at REIT investors to Freddie Mac’s Structured Agency Credit Risk securities and Fannie Mae’s Connecticut Avenue Securities (CAS®). The enhancements would enable Fannie and Freddie to structure future CRT offerings as notes issued by a trust in an arrangement that qualifies as a Real Estate Mortgage Investment Conduit (REMIC).

Freddie and Fannie announced the CRT enhancements on May 8.

(Contact: Victoria Rostow at vrostow@nareit.com)

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What's a REIT?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Why Invest in REITs

REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. These are the characteristics of real estate investment.

About Nareit

Nareit serves as the worldwide representative voice for REITs and real estate companies with an interest in U.S. real estate. Nareit’s members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses.