Fannie Mae Supports the Multifamily Mortgage Market with Robust Issuance in the First Quarter of 2012

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News Release

April 19, 2012

Fannie Mae Supports the Multifamily Mortgage Market with Robust Issuance in the First Quarter of 2012

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that the company issued $7.1 billion of multifamily MBS1 in the first quarter of 2012, backed by new multifamily loans delivered by our lenders. Fannie Mae also resecuritized $2.6 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the first quarter. 

“The strength of the Agency CMBS market is evidenced by robust volumes coincident with improving credit quality,” said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.  “Issuance in the first quarter of this year is up 44% over last year's first quarter, and outstanding Multifamily MBS is nearly $110 billion. Resecuritization activity is also increasing. We are on pace to exceed $10 billion in GeMS issuance this year.”

“Fundamentals in the rental housing market remain strong. New construction is subdued and tight supply is supporting rent growth as vacancy rates continue to decline,” said Jeff Hayward, Fannie Mae Senior Vice President and Head of Multifamily. 

Fannie Mae is the market leader in financing U.S. multifamily mortgages. The company's DUS MBS securities provide market participants with easily-modeled cash flows and call protection in defined maturities of five, seven and ten years. Fannie Mae's GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. 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 the first quarter of 2012 include the following: 

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the first quarter of 2012 totaled $7.1 billion. 

2)  FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.6 billion in the first quarter of 2012, including $2.5 billion in Fannie Mae GeMS REMICs and $100 million in Fannie Mae GeMS Megas.

3)  FANNIE MAE SALES

Fannie Mae Capital Markets sold $2.8 billion of multifamily mortgage securities from its portfolio in the first quarter of 2012.2 

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 Issuance in the First Quarter of 2012 

FNA 2012-M3, Priced on March 14, 2012 

Class

CUSIP

Original FACE

Weighted Average Life(Years)

 Coupon

Coupon Type

Spread

Offered Price

 1A1

3136A4M48

$70,282,951

5.56

2.098

Fixed Rate

S+40

101.00

1A2

3136A4M55

$342,043,694

9.77

3.044

Fixed Rate

S+63

101.00

1AB

3136A4M63

$56,226,361

9.05

2.911

Fixed Rate

S+73

99.88

X1

3136A4M71

$468,553,006

9.05

0.470

Interest Only

T+250

2.55

2A1

3136A4M89

$46,481,734

4.94

1.934

Fixed Rate

S+38

101.00

2A2

3136A4M97

$216,168,254

6.67

2.444

Fixed Rate

S+51

101.00

2AB

3136A4N21

$35,815,908

6.36

2.292

Fixed Rate

S+61

99.88

X2

3136A4N39

$298,465,896

6.36

0.726

Interest Only

T+240

3.39

Total

 

$767,018,902

 

 

 

 

 

Lead Manager:  Morgan Stanley

Co-Managers:  Citigroup and J.P. Morgan

 

FNA 2012-M2, Priced on February 15, 2012 

Class

CUSIP

Original FACE

Weighted Average Life(Years)

Coupon

Coupon Type

Spread

Offered Price

A1

3136A4TW9

$151,800,000

5.51

1.846

Fixed Rate

S+45

101.00

A2

3136A4TX7

$707,699,966

9.80

2.784

Fixed Rate

S+65

101.00

AB

3136A4TY5

$117,204,000

9.04

2.632

Fixed Rate

S+77

99.75

X

3136A4TZ2

$976,703,966

9.04

0.646

Interest Only

T+315

6.19

Total

 

$976,703,966

 

 

 

 

 

Lead Manager:   Wells Fargo Securities

Co-Managers:  J.P. Morgan and Morgan Stanley

 

FNA 2012-M1, Priced on January 13, 2012 

Class

CUSIP

Original Face

Weighted Average Life(Years)

 Coupon

Coupon Type

Spread

Offered Price

A1

3136A26L2

$80,670,000

5.42

1.811

Fixed Rate

S+48

100.50

A2

3136A27B3

$437,879,820

9.69

2.729

Fixed Rate

S+70

100.50

AB

3136A27C1

$70,700,000

9.02

n/a

Fixed Rate

Not offered

Not offered

 

FA

 

 

3136A27D9

 

$174,036,780

 

9.00

1mo

L+65

7.0% Cap

Floating Rate

 

L+65

 

100.00

 

SA

 

 

3136A27E7

 

$174,036,780

 

9.00

 

n/a

Inverse Interest Only

Not

offered

Not

offered

X

3136A27F4

$763,286,600

9.02

n/a

Interest Only

Not offered

Not offered

Total

 

$763,286,600

 

 

 

 

 

Lead Manager:  Credit-Suisse

Co-Managers:  J.P. Morgan and Wells Fargo

 

Fannie Mae GEMS Megas Issued in the First Quarter of 2012

Pool Number

CUSIP

Original UPB

Weighted Average Maturity at Issuance(months)

 Pricing Date

FN0026

3138NJA40

$89,449,335

82

1/10/2012

FN0029

3138NJA73

$11,875,105

162

2/22/2012

Total

 

$101,324,440

 

 

 

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 Fannie Mae GeMS sold.

Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. 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 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.