Fannie Mae Prices $1.14 Billion Multifamily DUS REMIC (FNA 2014-M8) Under Its Fannie Mae GeMS Program

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News Release

July 16, 2014

Fannie Mae Prices $1.14 Billion Multifamily DUS REMIC (FNA 2014-M8) Under Its Fannie Mae GeMS Program

Katherine Constantinou

202-752-5403

WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its seventh Multifamily DUS® REMIC in 2014 totaling $1.14 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on July 11, 2014. 

“Spreads on Agency CMBS continue to hover near the recent tights, as investor demand has expanded in the face of relatively short supply.  The offered bonds on FNA 2014-M8 were very well received – we were over-subscribed in less than a day,” said Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets.  “M8 includes a group backed by Fixed +1™ collateral on the shorter-end and a longer group, structured from new production 10-year DUS MBS.  We continue to find success with the flexibility of our GeMS program, which enables us to come to market consistently with structures that meet investor demand for Agency CMBS.”

All classes of FNA 2014-M8 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 in the table below: 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$733,295,597

3.55

0.433

Floater/ WAC Cap

1mL+25

100.00

SA

$733,295,597

2.59

4.731

Inverse IO

1.75 ytf,

100CPY

10.23

A1

$58,189,598

5.30

2.382

Fixed

S+32

101.00

A2

$305,856,690

9.80

3.110

Fixed/AFC

S+34

101.00

AB1

$6,465,511

5.30

2.164

Fixed

S+38

99.50

AB2

$33,984,076

9.80

2.975

Fixed

S+40

99.00

X2

$404,495,875

8.67

0.494

WAC IO

J+100

3.29

Total

$1,137,791,472

 

 

 

 

 

Group 1 Collateral

UPB:                                                                            $733,295,597
Collateral:                                                                  135 Fannie Mae DUS MBS
Geographic Distribution:                                        CA (57.3%), TX (14.3%), WA (3.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR):                 1.95x
Weighted Average
Loan-to-Value (LTV):                                                61.0%

Group 2 Collateral

UPB:                                                                              $404,495,875
Collateral:                                                                    71 Fannie Mae DUS MBS
Geographic Distribution:                                          TX (20.5%), CA (14.3%), WA (9.0%)
Weighted Average
Debt Service Coverage Ratio (DSCR):                  1.45x
Weighted Average
Loan-to-Value (LTV):                                                 70.6%

Settlement Date:                                                        July 31, 2014

Lead Manager:                                                           Deutsche Bank
Co-Managers:                                                            Citigroup and Wells Fargo

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M8) available on the Fannie Mae GeMS Archive page on 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 Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

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