Federal Housing Finance Agency
Federal Housing Finance Agency Announces Deemed-Issuance Ratio for 2026
December 9, 2025
Summary
FHFA set the 2026 deemed-issuance ratio at 52% Freddie Mac / 48% Fannie Mae, based on TBA-eligible UMBS issuance from November 1, 2023 through October 31, 2025 ($1.315 trillion total). Purchasers of TBA-eligible UMBS must use this ratio for IRS diversification reporting under section 817(h) and Revenue Procedure 2018-54 until the underlying bonds are disposed of, regardless of which Enterprise issued them. The ratio is rounded per IRS rules to be further from 50/50 than the actual observed data.
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Washington, D.C. – U.S. Federal Housing (Federal Housing Finance Agency or FHFA) today announced the deemed-issuance ratio for the 2026 calendar year in accordance with Internal Revenue Service (IRS) guidelines on the trading of the Uniform Mortgage-Backed Security (UMBS). The deemed-issuance ratio is used for diversification reporting on the bonds ultimately delivered to the purchaser until the bonds have been disposed of, regardless of whether Fannie Mae or Freddie Mac (together, the Enterprises) is the issuer on the underlying bonds.
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. Therefore, the deemed-issuance ratio for the 2026 calendar year is 52 percent Freddie Mac and 48 percent Fannie Mae.
| 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 |
Revenue Procedure 2018-54 provides guidance on section 817(h) of the Internal Revenue Code diversification requirements for variable annuity, endowment, and life insurance contracts. The IRS has provided a deemed-issuance ratio to allocate issuer exposure for To-Be-Announced (TBA) trades between the Enterprises. Compliance with these requirements is affected by the implementation of 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.
FHFA announces this ratio annually at least three weeks prior to the affected calendar year.
Common questions
- What does "Federal Housing Finance Agency Announces Deemed-Issuance Ratio for 2026" cover?
- FHFA set the 2026 deemed-issuance ratio at 52% Freddie Mac / 48% Fannie Mae, based on TBA-eligible UMBS issuance from November 1, 2023 through October 31,…
- Which agency issued this update?
- This update was issued by Federal Housing Finance Agency.
- When was it published?
- It was published on December 9, 2025.