WASHINGTON - Fannie Mae has expanded its Fannie Megas product line to include adjustable-rate mortgages. The Megas allow investors to take smaller pools of Fannie Mae mortgage-backed securities and form one large pool.

The company says Megas can offer investors reduced administrative costs, lower financing rates, and greater geographic diversity in the larger pool. Fannie Mae has more than $15 billion of ARM Megas outstanding.

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