The Federal Housing Finance Agency (FHFA) announced the deemed-issuance ratio for the 2026 calendar year under Internal Revenue Service (IRS) guidelines on trading of the Uniform Mortgage-Backed Security (UMBS). The ratio is used for diversification reporting to allocate issuer exposure on bonds delivered to purchasers in To-Be-Announced (TBA) trades until the bonds are disposed of, regardless of whether Fannie Mae or Freddie Mac is the issuer. For 2026, the deemed-issuance ratio is 52 percent Freddie Mac and 48 percent Fannie Mae. The ratio is based on the 24-month observation window required by IRS Revenue Procedure 2018-54, using TBA-eligible securities issued between 1 November 2023 and 31 October 2025 totaling USD 1,315.594 billion, comprising USD 682.513 billion of Freddie Mac issuance and USD 633.081 billion of Fannie Mae issuance; the revenue procedure also permits rounding where the rounded ratio is further from 50/50 than the observed data. FHFA determines and publishes the deemed-issuance ratio annually for each calendar year, with Revenue Procedure 2018-54 calling for the announcement at least three weeks prior to the affected year.
Federal Housing Finance Agency 2025-12-09
Federal Housing Finance Agency sets 2026 UMBS deemed-issuance ratio at 52 percent Freddie Mac and 48 percent Fannie Mae
The Federal Housing Finance Agency (FHFA) announced the deemed-issuance ratio for 2026 under IRS guidelines for trading the Uniform Mortgage-Backed Security (UMBS), set at 52% Freddie Mac and 48% Fannie Mae. Based on a 24-month observation window, this ratio is used for diversification reporting in To-Be-Announced (TBA) trades. The total issuance for the period was USD 1,315.594 billion, with USD 682.513 billion from Freddie Mac and USD 633.081 billion from Fannie Mae.