U.S. Federal Housing, the Federal Housing Finance Agency or FHFA, has announced the deemed-issuance ratio for the 2026 calendar year in accordance with Internal Revenue Service guidelines on the trading of the Uniform Mortgage-Backed Security.
The deemed-issuance ratio for the 2026 calendar year is 52 percent Freddie Mac and 48 percent Fannie Mae.
The ratio is used for diversification reporting on the bonds ultimately delivered to the buyer until the bonds have been disposed of, regardless of whether Fannie Mae or Freddie Mac is the issuer on the underlying bonds.
| TBA-eligible securities issued November 1, 2023 through October 31, 2025 (billions) | Deemed-Issuance Ratio (percent | |
| Fannie Mae | $633.081 | 48 |
| Freddie Mac | $682.513 | 52 |
| Total | $1,315.594 | 100 |
FHFA said that IRS Revenue Procedure 2018-54 provides that the ratio may be rounded as long as the rounded ratio is further from 50/50 than the actual observed data.
Revenue Procedure 2018-54 provides guidance on diversification requirements for variable annuity, endowment, and life insurance contracts.
FHFA said the IRS has provided a deemed-issuance ratio to allocate issuer exposure for to-be-announced (TBA) trades between Fannie Mae and Freddit Mac.
The Internal Revenue Service 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 Oct. 31 of the preceding year.
FHFA said it announces this ratio annually at least three weeks prior to the affected calendar year.
