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FHFA Announces Deemed-Issuance Ratio for 2019


​​​​​Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the deemed-issuance ratio for the 2019 calendar year in accordance with Internal Revenue Service (IRS) guidelines on the trading of the Uniform Mortgage-Backed Security (UMBS).

The IRS recently published Revenue Procedure 2018-54, which provides guidance on section 817(h) of the Internal Revenue Code diversification requirements for variable annuity, endowment, and life insurance contracts, as compliance with those requirements is affected by the implementation of the Single Security Initiative and trading in UMBS.

Revenue Procedure 2018-54 calls for FHFA to determine a deemed-issuance ratio for each calendar year based on the ratio of TBA-eligible securities issued by Fannie Mae and Freddie Mac during the 24-month period ending October 31 of the preceding year.

The IRS procedure provides that the ratio may be rounded as long as the rounded ratio is further from 50-50 than the actual observed data. Therefore, the deemed-issuance ratio for the 2019 calendar year is 60% Fannie Mae and 40% Freddie Mac.

​TBA-eligible securities issued
November 1, 2016 through October 31, 2018 (billions)

​Deemed-Issuance Ratio


​Fannie Mae



​Freddie Mac







FHFA plans to announce the ratio annually at least three weeks prior to the affected calendar year.



The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.2 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.

Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030
Consumers: Consumer Communications or (202) 649-3811

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