July 13, 2012
Fannie Mae Supports the Multifamily Market with Robust Issuance in the Second Quarter of 2012WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that the company issued approximately $6.7 billion1 of multifamily MBS in the second quarter of 2012, backed by new multifamily loans delivered by our lenders. Year-to-date issuance is $13.8 billion. Fannie Mae also resecuritized $1.2 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the second quarter.
“Increasing property values, solid operating incomes, and a low interest rate environment are all creating tailwinds. Issuance and resecuritization volumes remain elevated as the rental housing market continues its expansion and credit remains strong. Secondary market activity is also robust – there were seven Multifamily REMICS issued in the first half of the year,” said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.
The company’s DUS MBS securities provide market participants with highly predictable 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 second quarter of 2012 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the second quarter of 2012 totaled approximately $6.7 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $1.2 billion in the second quarter of 2012. This includes a $753.4 million Fannie Mae GeMS REMIC and $438.3 million in four Fannie Mae GeMS Megas. Dealers issued three multifamily REMICs backed by $1.6 billion of DUS MBS in the second quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $1.6 billion of multifamily mortgage securities from its portfolio in the second 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 Second Quarter of 2012
FNA 2012-M5, Priced on May 15, 2012
|
Class |
CUSIP |
Original FACE |
Weighted Average Life (Years) |
Coupon |
Coupon Type |
Spread |
Offered Price |
|
A1 |
3136A6HZ0 |
$93,100,000 |
5.51 |
1.787 |
Fixed Rate |
S+37 |
101.00 |
|
A2 |
3136A6JA3 |
$569,880,000 |
9.64 |
2.715 |
Fixed Rate |
S+70 |
101.00 |
|
AB1 |
3136A6JB1 |
$12,700,000 |
5.51 |
1.625 |
Fixed Rate |
S+45 |
99.75 |
|
AB2 |
3136A6JC9 |
$77,709,201 |
9.64 |
2.667 |
Fixed Rate |
S+80 |
99.75 |
|
X |
3136A6JD7 |
$753,389,201 |
9.06 |
N/A |
Interest Only |
Not Offered |
Not Offered |
|
Total |
|
$753,389,201 |
|
|
|
|
|
Lead Manager: J.P. Morgan
Co-Managers: Citigroup and Wells Fargo
Fannie Mae GEMS Megas Issued in the Second Quarter of 2012
|
Pool Number |
CUSIP |
Original UPB |
Weighted Average Maturity at Issuance (Months) |
Trade date |
|
FN0027 |
3138NJA57 |
$10,711,874 |
139 |
3/30/2012 |
|
FN0028 |
3138NJA65 |
$2,555,262 |
151 |
5/23/2012 |
|
FN0030 |
3138NJA81 |
$265,357,000 |
118 |
4/11/2012 |
|
FN0031 |
3138NJA99 |
$162,646,247 |
118 |
4/24/2012 |
|
Total |
|
$438,270,383 |
|
|
1 Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.
2 Includes Fannie Mae GeMS sold.