News Release

February 12, 2015

Fannie Mae Multifamily Issues $28.6 Billion of Multifamily MBS in 2014

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) issued $28.6 billion of multifamily MBS in 2014, primarily through the Delegated Underwriting and Servicing (DUS®) program, ending the year with multifamily MBS issuance of $11.4 billion1 in the fourth quarter.  In 2013, multifamily MBS issuance totaled $28.5 billion.  Fannie Mae also resecuritized $2.5 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS) program in the fourth quarter, bringing total 2014 issuance to $12.0 billion, which represents the largest year of GeMS issuance since inception of the program.

"2014 was a strong year for Fannie Mae Multifamily activity on all fronts.  The DUS Lender community helped us provide more capital for rental housing than any other securitization platform – our Multifamily MBS execution continues to lead the market," said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. "Our Agency CMBS platform, GeMS, which are structured products created from Multifamily MBS, also had a record year.  We had hundreds of investors – including dozens of new investors – participate in Multifamily MBS and GeMS Agency CMBS.  Investors really see the value in Lender risk retention that we’ve had for the last 25 plus years, and we are looking forward to another great year in 2015."

The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities ranging from 5 to 30 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 include: consistent monthly issuance, block size transactions, collateral diversity, and pricing close to par. 

Highlights of Fannie Mae’s multifamily activity in the fourth quarter of 2014 include the following:

1)      MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the fourth quarter of 2014 totaled $11.4 billion. 

2)      FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.5 billion in the fourth quarter of 2014.  This issuance volume was generated from two Fannie Mae GeMS REMIC transactions.  Through the fourth quarter of 2014, we have issued $12.0 billion in GeMS REMICs – a record year and the highest issuance since program inception.  In addition, Fannie Mae issued $2.9 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in 2014.

3)      FANNIE MAE SALES

Fannie Mae Capital Markets sold $3.4 billion of Fannie Mae multifamily mortgage securities from its portfolio in the fourth quarter of 2014.2

For additional information about Fannie Mae’s multifamily MBS products and issuance please refer to the Multifamily MBS webpage and the MBSenger® Publication “Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on FannieMae.com.

 

Fannie Mae GeMS Issuance in the Fourth Quarter of 2014

FNA 2014-M13, Priced on November 14, 2014

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$64,360,478

2.11

0.848

Fixed

E+5

100.00

ASQ2

$364,709,373

2.71

1.637

Fixed

S+20

101.00

X1

$429,069,851

2.62

4.055

WAC IO

Not Offered

Not Offered

A1

$87,345,536

5.85

2.566

Fixed

S+45

101.00

A2

$610,311,006

9.68

3.021

Fixed/AFC

S+48

101.00

AB1

$11,910,754

5.85

2.401

Fixed

S+52

99.75

AB2

$83,224,228

9.68

2.951

Fixed/AFC

S+56

99.75

X2

$792,791,524

8.77

0.143

WAC IO

Not Offered

Not Offered

Total

$1,221,861,375

 

 

 

 

 

Lead Manager:  Morgan Stanley
Co-Managers:    Bank of America Merrill Lynch and Jefferies


FNA 2014-M12, Priced on October 10, 2014

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$719,949,655

5.67

0.453

Floater/AFC

S+30

100.00

FX

$719,949,655

0.27

1.318

WAC IO

Not Offered

Not Offered

ASV1

$53,300,000

3.52

1.928

Fixed

S+28

101.00

ASV2

$548,180,025

6.73

2.614

Fixed/AFC

S+38

101.00

X2

$601,480,025

5.99

0.393

WAC IO

Not Offered

Not Offered

Total

$1,321,429,680

 

 

 

 

 

Lead Manager:  Credit Suisse
Co-Managers:    Citigroup and Deutsche Bank Securities

 

1Reflects 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. 

2Includes Fannie Mae GeMS sold and excludes sales of CMBS.


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 http://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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