Fannie Mae Prices $767 million Multifamily DUS REMIC under its Fannie Mae GeMS Program

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News Release

March 16, 2012

Fannie Mae Prices $767 million Multifamily DUS REMIC under its Fannie Mae GeMS Program

Katherine Constantinou

202-752-5403

WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its third Multifamily DUS REMIC in 2012 totaling $767 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program on March 14, 2012.

“In the weeks leading up to the launch of 2012-M3, we received numerous inquiries about seven-year paper.  We continue to see heightened demand in 7s and 10s as rates sell off and the yield curve steepens.  Agency CMBS remains well-bid in the secondary market as well," said Kimberly Johnson, Vice President of Multifamily Capital Markets.   FNA 2012-M3 marks the first time the Fannie Mae GeMS program has employed a grouped collateral structure, offering separate tranches backed by seven-year and ten-year collateral.

All classes of FNA 2012-M3 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.  The structure details for the multi-tranche offering are included in the table below.

 

Class

Original Face

Weighted Average Life

 Coupon

Coupon Type

Spread

Offered

Price

 1A1

$70,282,951

5.56

2.098

Fixed Rate

S+40

101.00

1A2

$342,043,694

9.77

3.044

Fixed Rate

S+63

101.00

1AB

$56,226,361

9.05

2.911

Fixed Rate

S+73

99.88

X1

$468,553,006

9.05

0.470

Interest Only

T+250

2.55

2A1

$46,481,734

4.94

1.934

Fixed Rate

S+38

101.00

2A2

$216,168,254

6.67

2.444

Fixed Rate

S+51

101.00

2AB

$35,815,908

6.36

2.292

Fixed Rate

S+61

99.88

X2

$298,465,896

6.36

0.726

Interest Only

T+240

3.39

Total

$767,018,902

 

 

 

 

 

 

Group 1 Collateral

UPB:                                                                   $468,553,006

Collateral:                                                          83 Fannie Mae 10/9.5 DUS MBS

Geographic Distribution:                                CA (13%), NY (10%), TX (10%)

Weighted Average
Debt Service Coverage Ratio (DSCR):         1.77x

Weighted Average
Loan-to-Value (LTV):                                         65.7%

Group 2 Collateral

UPB:                                                                    $298,465,896

Collateral:                                                          44 Fannie Mae 7/6.5 DUS MBS

Geographic Distribution:                                CA (23%), VA (13%), FL (13%)

Weighted Average
Debt Service Coverage Ratio (DSCR):         1.48x

Weighted Average
Loan-to-Value (LTV):                                        69.0%

 

Lead Manager:                                                  Morgan Stanley           

Co-Managers:                                                   Citigroup and J.P. Morgan

Settlement Date:                                              March 30, 2012

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2012-M3) available on Fannie Mae’s GeMS Archives page at www.fanniemae.com.

 

Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. 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 U.S. Securities and Exchange Commission ("SEC") available on the Investors page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

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.