News Release

September 16, 2014

Fannie Mae Prices $986 Million Multifamily DUS REMIC (FNA 2014-M10) Under Its Fannie Mae GeMS Program

Katie Penote

202-752-2261

WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its ninth Multifamily DUS® REMIC in 2014 totaling $986 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on September 10, 2014. 

“The M10 deal represented a number of ‘firsts’ for the GeMS program.  It was our first deal using exclusively new issue 5-year collateral and our first deal featuring the collateral of just one of our DUS lenders – in this case, Prudential,” said Josh Seiff, Vice President of Multifamily Capital Markets at Fannie Mae. “We got great execution and broad investor participation. Clearly, investors are comfortable with the high quality assets, solid underwriting, and lender risk sharing that have become hallmarks of the DUS platform.” 

“Prudential is very excited to have worked with Fannie Mae on this GeMS transaction,” said Mike McRoberts, a Managing Director with Prudential Mortgage Capital Company. “This was a very successful execution that met all parties’ needs and will help expand liquidity in the Multifamily market.” 

All classes of FNA 2014-M10 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

ASQ1

$152,963,000

3.13

1.518

Fixed

S+20

99.94

ASQ2

$833,442,248

4.99

2.171

Fixed/AFC

S+23

100.00

X1

$986,405,248

4.25

0.110

WAC IO

T+50, 100CPY

0.45

Total

$986,405,248

 

 

 

 

 

Group 1 Collateral

UPB:                                                                   $986,405,248
Collateral:                                                         17 Fannie Mae DUS MBS
Geographic Distribution:                               CA (100%)
Weighted Average
Debt Service Coverage Ratio (DSCR):        1.38x
Weighted Average
Loan-to-Value (LTV):                                       63.9%

Settlement Date:                                            September 30, 2014

Lead Manager:                                               Goldman, Sachs & Co.
Co-Managers:                                                 BofA Merrill Lynch and Barclays

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M10) 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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