|AMBIR - All Mortgage Backed Income Reporting
The service encompasses two process modules:
- Structured MBS Module
This process module covers mainly the Real Estate Mortgage Investment Conduits (REMIC)
and the Collateralized Debt Obligations (CDO). This service identifies the collateralized
debt obligations and REMICs held, and provides your firm with the calculation of the 1099
reportable income, additional written statement and the calculation of secondary market
adjustment information, (premium and discount information), for investor level tax reporting.
Monthly CUSIP files are provided as a tool for your firm to update your security master,
ensure cash payments are classified correctly and as a solicitation of transaction activity
that WSC utilizes to perform income calculations. Income calculations are performed once
annually in March to meet your March 15th 1099 reporting obligation.
REMICs are subject to accelerated repayment of principal. Issuers are required to adjust
income accruals based on the actual prepayment history relative to the prepayment history
projected at the time of issue. For this reason, the tax factors must be collected from
issuers and are only available periodically. Certain REMICs (Combinables) are constructed as
combinations of other underlying REMICs. WSC maintains a database of these issues and since,
data is only available on the underlying classes, unwinds Combinables into their underlying
components for processing. WSC also provides daily on-line management reports covering the
progress of the data collection process so clients can optimize the decision of when to process their 1099s.
- Pass Through MBS Module
This process module covers the mortgage backed securities that are classified as Widely Held
Mortgage Trusts (WHMTs), a subset of Widely Held Fixed Investment Trusts (WHFIT).
There are three major WHMTs issuers, Freddie Mac, Fannie Mae, and Ginnie Mae. The service
collects the tax factor files from these issuers and applies the information to your firm's
transactions and payment activities to create comprehensive schedules of gross income,
expense, and other required information indicated under the WHFIT regulation.
Because the tax factor files are only available once a year, the security identification
file can only be updated and distributed annually. However, the securities can be identified based on certain criteria.
The output of this module is offered in three versions:
- Data Files:
Data files are returned giving payment by payment detail of income,
expense, proceeds, withholding, principal factor, market discount fraction, and income
adjustment. Separate records are supplied summarizing the above elements for the tax year.
- Supplemental Schedule Print Image:
For each holding a print image is returned showing
the summary and detail. This is to be used as an additional schedule for client reporting.
- Full Statement Image and IRS Filing:
This option returns a complete print image of the
statement to be delivered to the investor. Also, a 1099 filing is made with the IRS on behalf of the subscriber.
| For more information, please contact wsc.ClientServices@fisglobal.com.