Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011

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News Release

January 24, 2012

Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011

Andrew Wilson

202-752-5168

Fannie Mae GeMSTM Issuance Reached $6 Billion Milestone in the Program's First Year

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that the company issued $7.2 billion multifamily MBS1 in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009. Total new issuance for 2011 was $23.8 billion, up from $16.4 billion in 2010.  Fannie Mae also resecuritized $6.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program in 2011.

“Market activity in our multifamily securities is clearly gaining momentum. Tradable float, the volume of securities available to investors, has increased significantly over the past few years.  Fannie Mae’s multifamily MBS outstanding has grown to over $100 billion.  As volumes increase and liquidity rises, we expect market participants will focus on Agency multifamily securities in the coming year,” said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.

Fannie Mae is the market leader in financing U.S. multifamily mortgages and has traditionally been a leader in this market. The company’s DUS MBS securities provide market participants with easily-modeled cash flows and call protection in defined maturities of 5-, 7- and 10-years. Fannie Mae's GeMS program consists of structured multifamily securities created from Fannie Mae’s portfolio of mortgage securities. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs (ACES®) and multifamily Mega securities.

Highlights of Fannie Mae’s multifamily activity in 2011 include the following:

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the fourth quarter of 2011 totaled $7.2 billion.  Total 2011 new issuance volumes reached $23.8 billion. 

2)  FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from its portfolio totaled $1.9 billion in the fourth quarter of 2011, including $1.8 billion in GeMS REMICs and $0.1 billion in GeMS Megas.  For full-year 2011, Fannie Mae issued $6.0 billion in GeMS securities, including $4.4 billion in GeMS REMICs and $1.6 billion in GeMS Megas.

3)  FANNIE MAE SALES

Fannie Mae Capital Markets sold $10.6 billion of multifamily mortgage securities in 2011, including $2.8 billion in the fourth quarter. 2

For additional information about Fannie Mae’s multifamily MBS products and issuance please refer to Basics of Multifamily MBS and our MBSenger Publication “Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on fanniemae.com.

Fannie Mae GeMS REMIC Issuance in the Fourth Quarter of 2011

FNA 2011-M7, Priced on October 13, 2011

Class

CUSIP

Original Face

Weighted Average Life

Coupon

Coupon Type

Pricing Spread

Offered Price

A1

3136A1F67

$90,000,000

4.95

2.049%

Fixed Rate

+55

100.50

A2

3136A1F75

$418,140,000

6.60

2.578%

Fixed Rate

+70

100.50

AB

3136A1F83

$69,281,000

6.31

2.508%

Fixed Rate

+82

99.75

X

3136A1F91

$577,421,000

6.31

1.331%

Interest Only

Not  offered

Not offered

Total

 

$577,421,000

 

 

 

 

 

Lead Manager:   Credit Suisse

Co-Manager:  Citigroup

 

FNA 2011-M8, Priced on November 8, 2011

Class

CUSIP

Original Face

Weighted Average Life

Coupon

Coupon Type

Pricing Spread

Offered Price

A1

3136A1W76

$75,001,834

5.40

1.977

Fixed Rate

+53

100.50

A2

3136A16X8

$397,772,166

9.70

2.922

Fixed Rate

+72

100.50

AB

3136A16Y6

$64,469,874

9.02

2.905

Fixed Rate

+88

99.75

FA

3136A16Z3

$181,799,413

9.02

1mo

L+70

7.0% Cap

Floating Rate

+70

100.00

SA

3136A17A7

$181,799,413

8.59

n/a

Inverse Interest Only

Not

offered

Not

offered

X

3136A17B5

$719,043,287

8.60

n/a

Interest Only

Not  offered

Not offered

Total

 

$719,043,287

 

 

 

 

 

Lead Manager:   Morgan Stanley

Co-Manager:   Amherst Securities and Citigroup

 

FNA 2011-M9, Priced on December 15, 2011 

Class

CUSIP

Original Face

Weighted Average Life

Coupon

Coupon Type

Pricing Spread

Price

A1

3136A2W33

 

$101,252,108

 

6.66

2.322

Fixed Rate

+55

100.50

A2

3136A2W41

 

$212,725,692

 

8.87

2.821

Fixed Rate

+70

100.50

AB

3136A2W58

 

$42,815,155

 

8.16

2.773

Fixed Rate

+85

99.75

FA

3136A2W66

 

$155,998,913

 

8.19

1mo

L+65

7.0% Cap

Floating Rate

+65

100.00

SA

3136A2W74

 

$155,998,913

 

7.83

n/a

Inverse Interest Only

Not

offered

Not

offered

X

3136A2W82

 

$512,791,868

 

7.82

n/a

Interest Only

Not offered

Not offered

Total

 

$512,791,868

 

 

 

 

 

Lead Manager:   Bank of America Merrill Lynch

Co-Managers:     Amherst Securities and J.P. Morgan

1 Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio securitization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.

2 Includes GeMS sold

Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future and expected increases in investments by market participants in Agency multifamily securities. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our Multifamily MBS Prospectus dated October 1, 2010 and our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"). In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the SEC available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.