News Release

July 25, 2016

Fannie Mae Issues $10.1 Billion of Multifamily MBS in the Second Quarter of 2016

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $10.1 billion1 of multifamily MBS in the second quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®) program.  Fannie Mae also resecuritized $2.9 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS) program.

“We had a very strong first half, issuing more than $28 billion in multifamily securities and structured transactions,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae.  “Our lenders have direct access to the markets and the vast majority of our multifamily production is purchased by investors as MBS.  That daily trading creates transparency and opportunity for investors and great liquidity for lenders and borrowers."

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 second quarter of 2016 include the following:

  1. MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
    New multifamily MBS business volumes in the second quarter of 2016 totaled $10.1 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 $2.9 billion in the second quarter of 2016.  This issuance volume included three Fannie Mae GeMS REMIC transactions.  In addition, Fannie Mae issued $172.3 million in Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the second quarter of 2016, adding to the liquidity of Fannie Mae DUS MBS.

  3. FANNIE MAE SALES
    Fannie Mae Capital Markets sold $3.5 billion of Fannie Mae multifamily mortgage securities from its portfolio in the second 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 fanniemae.com.

Fannie Mae GeMS Issuance in the Second Quarter of 2016

FNA 2016-M6, Priced on June 9, 2016

CLASS

ORIGINAL FACE

WEIGHTED AVERAGE LIFE

COUPON (%)

COUPON TYPE

SPREAD

OFFERED
PRICE

ASQ1

$100,000,000

1.28

1.163

Fixed

E+13

100.12

ASQ2

$191,894,719

2.05

1.785

Fixed

S+33

101.00

X1

$291,894,719

1.33

3.884

WAC IO

Not Offered

Not Offered

A1

$68,432,000

6.14

2.137

Fixed

S+67

101.00

A2

$467,607,914

9.86

2.488

Fixed

S+83

101.00

AB1

$9,331,636

6.14

1.946

Fixed

S+70

99.75

AB2

$63,764,716

9.86

2.395

Fixed

S+88

99.75

X2

$609,136,266

8.95

0.340

WAC IO

Not Offered

Not Offered

TOTAL

$901,030,985

 

 

 

 

 

Lead Manager:  BofA Merrill Lynch
Co-Managers:   Credit Suisse, PNC Capital Markets & Great Pacific Securities

FNA 2016-M5, Priced on May 11, 2016

CLASS

ORIGINAL FACE

WEIGHTED AVERAGE LIFE

COUPON (%)

COUPON TYPE

SPREAD

OFFERED 
PRICE

FA

$269,786,207

6.52

1.156

Floater/AFC

L+72

99.92

FX

$269,786,207

0.84

0.595

WAC IO

Not Offered

Not Offered

A1

$72,191,000

5.81

2.073

Fixed

S+63

101.00

A2

$480,410,607

9.82

2.469

Fixed

S+78

101.00

AB1

$9,845,000

5.81

1.871

Fixed

S+66

99.75

AB2

$65,511,000

9.82

2.375

Fixed

S+83

99.74

X2

$627,957,607

8.86

0.542

WAC IO

Not Offered

Not Offered

TOTAL

$897,743,814

 

 

 

 

 

Lead Manager:  Citigroup
Co-Managers:    Morgan Stanley, Amherst Pierpont Securities & Loop Capital Markets

FNA 2016-M4, Priced on April 12, 2016

CLASS

ORIGINAL FACE

WEIGHTED AVERAGE LIFE

COUPON (%)

COUPON TYPE

SPREAD

OFFERED
PRICE

A1

$48,942,000

5.98

2.187

Fixed

S+70

101.00

A2

$394,395,000

9.81

2.576

Fixed

S+83

101.00

AB1

$6,674,000

5.98

1.990

Fixed

S+73

99.75

AB2

$53,781,740

9.81

2.482

Fixed

S+88

99.75

X1

$503,792,740

8.94

0.490

WAC IO

Not Offered

Not Offered

AL

$548,654,698

15.29

3.273

Fixed

S+120

102.00

X2

$548,654,698

5.71

2.695

WAC IO

Not Offered

Not Offered

TOTAL

$1,052,447,438

 

 

 

 

 

Lead Manager:  Credit Suisse
Co-Managers:    Nomura, KGS-Alpha Capital Markets & Mischler Financial Group

 

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, MRB, 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 and Quarterly Report on Form 10-Q 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 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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