Fannie Mae's Multifamily MBS Issuance Hits $21.5 Billion through the Third Quarter

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News Release

October 10, 2013

Fannie Mae's Multifamily MBS Issuance Hits $21.5 Billion through the Third Quarter

Keosha Burns

202-752-7840

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued approximately $5.7 billion1 of multifamily MBS in the third quarter of 2013, backed by new multifamily loans delivered by its lenders.  Fannie Mae also resecuritized $1.7 billion of DUS® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the third quarter. 

“We have continued to supply consistent liquidity to the multifamily market, with issuance topping $21.5 billion so far this year,” said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing, Fannie Mae.  “Although higher rates and the annual summer slowdown combined to reduce DUS issuance in the third quarter, the Capital Markets desk kept the investor community involved with sales of seasoned collateral from our portfolio, including two GeMS deals.  Both deals included floating-rate tranches structured from fixed-rate collateral to help investors adjust to the rising rate environment.” 

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 third quarter of 2013 include the following:

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ISSUANCE

New multifamily MBS business volumes in the third quarter of 2013 totaled approximately $5.7 billion.    

2)  FANNIE MAE STRUCTURED PRODUCTS ISSUANCE

Issuance of Fannie Mae GeMS securities created from collateral selected by Multifamily Capital Markets totaled $1.7 billion in the third quarter of 2013; this included two Fannie Mae GeMS REMIC transactions.  In addition, Wells Fargo sponsored the fourth non-GeMS ACES REMIC of 2013, backed by $414 million of its own DUS MBS.

3)  FANNIE MAE CAPITAL MARKETS SALES

Fannie Mae Capital Markets sold approximately $2.7 billion of multifamily mortgage securities from its portfolio in the second quarter of 2013.2

For additional information about Fannie Mae’s multifamily MBS products and issuance please refer to the Multifamily MBS webpage and the MBSenger® Publication “Twenty-Five Years of Multifamily Mortgage Financing Through Fannie Mae's Delegated Underwriting and Servicing (DUS) Program” on fanniemae.com.

Fannie Mae GeMS Issuance in the Third Quarter of 2013

FNA 2013-M12, Priced on September 13, 2013 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

A

$127,955,786

3.33

1.532

Fixed Rate

S+35

100.00

FA

$268,625,022

3.29

0.510

Floating Rate

1mL+33

100.00

SA

$268,625,022

3.29

6.490

Inverse IO

Not offered

Not offered

X1

$396,580,808

3.31

0.167

WAC IO

Not offered

Not offered

APT

$691,478,938

8.42

2.383

WAC

S+70

92.27

Total

$1,088,059,746

 

 

 

 

 

Lead Manager:  Wells Fargo

Co-Managers:    Goldman Sachs and Morgan Stanley

 

FNA 2013-M11, Priced on July 15, 2013 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

A

$174,279,891

2.92

1.500

Fixed Rate

Not offered

Not offered

FA

$408,503,197

2.96

1mL+33

Floating Rate

33 DM

100.0

SA

$408,503,197

2.96

6.478

Inverse IO

Not offered

Not offered

X2

$582,783,088

2.95

0.133

WAC IO

Not offered

Not offered

Total

$582,783,088

 

 

 

 

 

Lead Manager & Sole BookrunnerCredit Suisse

 

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.  Excludes Multifamily directed CMBS sales activity.

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.

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