In 2006, the IRS and Treasury Department issued final regulations regarding the responsibilities of trustees and middlemen to report, or make available, information to investors in Widely Held Fixed Investment Trusts (WHFITs), including Widely Held Mortgage Trusts (WHMTs). The regulations, Reporting for Widely Held Fixed Investment Trusts, are applicable to Ginnie Mae issuers/servicers as the designated trustees of securitized loans under the Agency's programs, as well as issuers that are trustees of loans backing private label mortgage-backed securities. MBA sent a letter to the IRS in 2006 requesting relief for Ginnie Mae issuers from reporting under the regulations, and sponsored an industry meeting and numerous conference calls in 2007 regarding the implications of the regulations to those issuers. The regulations went into effect in January 2007; however, in response to MBA's 2006 request, general penalty relief is provided for trustees of WHMTs that "…are unable to comply with certain provisions of the WHFIT reporting rules with respect to the 2007 calendar year because those trustees and middlemen were not able to change their existing reporting systems to comply with the WHFIT reporting rules pending the publication of these final regulations." (see link to December 29, 2006, regulations below). MBA is continuing to sponsor calls among Ginnie Mae issuers regarding the regulations.
Links to the regulations, and other relevant sources of information, are listed below.
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