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REMICs

Real Estate Mortgage Investment Conduits (REMICs) feature customized structuring of mortgage pass-through securities to redistribute cash flows.

Freddie Mac offers a variety of REMIC products, working closely with dealers and investors to tailor the security cash flows to meet a variety of investment needs. Freddie Mac's REMIC Dealer Group dealers serve as quality underwriters and liquidity providers of REMIC products.

What Is a REMIC?

REMICs, created by the Tax Reform Act of 1986, are multiclass, mortgage-backed securities in which cashflows from the underlying mortgage assets are allocated to individual bond slices, called tranches, with different maturities, coupons and payment priorities thereby allowing greater flexibility in structuring.

REMICs are sometimes referred to as CMOs, or Collateralized Mortgage Obligations. Freddie Mac began issuing REMICs in March 1988 and issued the first REMIC backed by Gold PCs in October 1990.

Commingling of UMBS

Investors can commingle UMBS® and Supers® issued by either Freddie Mac or Fannie Mae (the Enterprises) and deliver those into a Freddie Mac REMIC.

Freddie Mac REMIC Collateral Composition

Collateral Eligible for Delivery into a REMIC

REMIC CollateralRe-REMIC Collateral
  • All 55-day UMBS pass-throughs and Supers:
    • 30-year CL/ZL
    • 20-year CT/ZT
    • 15-year CI/ZI
    • 10-year CN/ZN
  • 45-day PCs and Giants that have been exchanged for 55-day UMBS
  • Unexchanged 45-day UMBS-eligible PCs and Giants
  • All 55-day REMIC classes issued by either Enterprise that at original issuance were 100% backed by UMBS prefixes*
  • All 45-day REMIC classes issued by either Enterprise that at original issuance were 100% backed (at all levels) by 45-day PCs/Giants that were UMBS-eligible*

* At all levels for multiple-layer Re-REMICS

Non-UMBS-Eligible Collateral for REMICs Issued by Each Enterprise

Freddie MacFannie Mae
REMIC CollateralREMIC Collateral
  • All Freddie Mac-issued 55-day non-UMBS pass-throughs and Giants
  • All Freddie Mac 45-day PCs/Giant/Strips that are not eligible for exchange into 55-day UBMS prefixes
  • All Fannie Mae-issued 55-day non-UMBS passthroughs, Megas and Strips (fixed rate and ARM)
Re-REMIC CollateralRe-REMIC Collateral
  • All 55-day Freddie Mac-issued REMIC classes that at original issuance were not 100% backed* by UMBS prefixes
  • All 45-day REMIC classes that at original issuance were not 100% backed* by 45-day PCs/Giants that would be exchange-eligible into 55-day UBMS prefixes
  • All 75-day ARM collateral
  • All Freddie Mac-issued excess servicing Strip trust classes
  • All 55-day Fannie Mae-issued REMIC classes that at original issuance were not 100% backed* by UMBS prefixes
  • All Fannie Mae-issued excess servicing Strip trust classes

* At all levels for multiple-layer Re-REMICS

Loan-Level Directed CollateralSM (LLDCSM)

Loan-Level Directed Collateral allows a dealer to customize eligible collateral at the loan level and then use the customized collateral to back newly issued Freddie Mac REMIC classes.

LLDC offers enhanced optionality and customization at the collateral level than is currently available in the REMIC program. See a listing of current LLDC-eligible securities.

Learn more about LLDC.

Formation Guidelines

For assistance with the execution of a REMIC transaction, email [email protected].

Additional Resources

Disclosures

Freddie Mac Dealer Direct®

Authorized Giant, Supers and REMIC dealers can request trades and pricing, modify details, and upload information.

Dealer Direct

Dealer Groups

Work with one of our approved Mortgage Securities Dealer Groups.

View Groups

This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Information Statement and related supplements.