IRS Helps Federal Agencies Tap Variable Life and Annuity Users
October 23, 2018 by Allison Bell
The Internal Revenue Service has come out with new guidelines that could help two other federal agencies use cash from variable life and variable annuity holders to support federal mortgage loan guarantees.
The IRS gave the federal mortgage agencies the boost with Revenue Procedure 2018-54.
Two major federal mortgage agencies — the Federal Home Loan Mortgage Corp. (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) — want to team up to offer a new type of “uniform mortgage-backed security” (UMBS) through a Single Security Initiative (SSI) program.
The new IRS guidelines clear away an investment asset diversification rule that could have reduced life insurers’ ability to put the new UMBS products in variable life and variable annuity customers’ separate accounts.