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Press Release

Fannie Mae Issues $12.6 Billion of Multifamily MBS in the First Quarter of 2016

April 25, 2016

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $12.6 billion1 of multifamily MBS in the first quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae also resecuritized $2.7 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program.

“The beginning of 2016 was a turbulent time for global markets,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. “Our MBS execution and the DUS risk-sharing model helped protect borrowers from the increased volatility we saw in the credit markets. Fannie Mae Multifamily borrowers and lenders had great access to liquidity – investors purchased more than $15 billion in new issue securities and structured transactions in the first quarter of 2016."

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 first quarter of 2016 include the following:

  1. FANNIE MAE MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
    New multifamily MBS business volumes in the first quarter of 2016 totaled $12.6 billion.
  2. FANNIE MAE GeMS ISSUANCE/STRUCTURED SECURITIES
    Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.7 billion in the first quarter of 2016. This issuance volume included three Fannie Mae GeMS REMIC transactions. In addition, Fannie Mae issued $301 million in Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the first quarter of 2016, adding to the liquidity of Fannie Mae DUS MBS.
  3. FANNIE MAE SALES
    Fannie Mae Capital Markets sold $6.2 billion of Fannie Mae multifamily mortgage securities from its portfolio in the first quarter of 2016.2

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-Five Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on www.fanniemae.com.

Fannie Mae GeMS Issuance in the First Quarter of 2016

FNA 2016-M3, Priced on March 8, 2016

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered
Price

ASQ1

$35,000,000

3.46

1.468

Fixed

Not Available

Not Available

ASQ2

$285,116,260

6.23

2.263

Fixed/AFC

S+87

100.00

X1

$320,116,260

4.35

2.431

WAC IO

Not Offered

Not Offered

A1

$46,969,000

5.90

2.256

Fixed

S+71

101.00

A2

$428,616,391

9.83

2.702

Fixed

S+92

101.00

AB1

$6,387,000

5.90

2.056

Fixed

Not Available

Not Available

AB2

$58,280,763

 9.83

2.606

Fixed

S+97

99.74

X2

$540,253,154

8.99

0.555

WAC IO

Not Offered

Not Offered

Total

$860,369,414

         

Lead Manager:  Citigroup
Co-Managers:    Morgan Stanley, Amherst Pierpont Securities, and Ramirez & Co., Inc.

FNA 2016-M2, Priced on February 9, 2016

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered
Price

FA

$183,863,467

6.52

1.276

Floater/AFC

S+85

99.91

FX

$183,863,467

0.86

0.326

WAC IO

Not Offered

Not Offered

AV1

$45,639,000

3.38

1.470

Fixed

S+53

100.00

AV2

$419,454,000

6.60

2.152

Fixed

S+83

100.00

ABV1

$6,224,000

3.38

1.443

Fixed

Not Offered

Not Offered

ABV2

$57,198,178

6.60

2.131

Fixed

S+85

99.75

X2

$528,515,178

 5.84

1.027 

WAC IO 

Not Offered 

Not Offered 

AL

$214,196,385

12.18

3.471

Fixed

S+150

102.00

X3

$214,196,385

4.39

1.944

WAC IO

Not Offered

Not Offered

Total

$926,575,030

 

 

 

 

 

Lead Manager:  Credit Suisse
Co-Managers:    Bank of America Merrill Lynch Securities Inc, KGS-Alpha Capital Markets, and Multi-Bank Securities Inc

FNA 2016-M1, Priced on January 19, 2016

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered
Price

ASQ1

$60,000,000

2.79

1.374

Fixed

S+28

99.92

ASQ2

$169,086,253

4.21

2.132

Fixed/ AFC

S+57

99.93

X1

$229,086,253

2.63

3.691

WAC IO

Not Offered

Not Offered

A1

$80,856,000

5.91

2.428

Fixed

S+71

101.00

A2

$635,741,686

9.87

2.939

Fixed/ AFC

S+98

100.72

X2

$716,597,686

9.98

0.131

WAC IO

Not Offered

Not Offered

Total

$945,683,939

 

 

 

 

 

Lead Manager:   Morgan Stanley
Co-Managers:    Citigroup, Amherst Pierpont Securities, and Drexel Hamilton

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, ASAP purchases, and DMBS.

This release contains forward-looking statements. 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 Annual Report on Form 10-K 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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