News Release

August 09, 2017

Fannie Mae Prices Its First Green Multifamily DUS REMIC (FNA 2017-M10) Under Its GeMS Program

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its first GeMS REMIC backed exclusively by its Green MBS collateral today. To our knowledge, this is the first issuance of its kind in the U.S. market. The FNA 2017-M10 is the firm’s eighth Multifamily DUS® REMIC in 2017 under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS). In February of this year, Fannie Mae issued its first Green REMIC tranches as part of a larger GeMS deal (FNA 2017-M2 A1 and A2). This month’s M10 transaction included two tranches, the AV1 and the AV2, which are backed by 20 7-year loans originated under the Fannie Mae Green Financing Business and securitized as Green DUS MBS. The 20 loans are secured by multifamily properties that have either achieved a Green Building Certification such as LEED, ENERGY STAR® or Green Globes or were targeting a 20% or greater reduction in energy or water consumption.

“The Fannie Mae Multifamily Platform continues to chart new territory with the market's   first REMIC deal backed entirely by Green MBS,“ said Lisa Bozzelli, Director, Multifamily Capital Markets and Pricing. “As the book of tradable Green DUS MBS surpasses the $14 billion mark, we are excited to be provide an investment opportunity for those GeMS investors who value both a socially responsible investment opportunity and appreciate the high quality of DUS collateral.”

Fannie Mae’s Multifamily Green Financing Business provides financing through several different green product offerings, encouraging apartment building owners to make energy and water savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has grown the book of business each year, culminating in the issuance of over $10 billion in the first half of 2017.

“Fannie Mae continues to innovate in the area of Green Financing, and the M10 transaction is one more example. Green Financing provides tangible benefits to property owners while also benefitting the environment,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “Not only that, but the properties that follow green building principles are often healthier environments for the tenants that live in them. It’s another great example of ‘doing well by doing good.’”

All classes of FNA 2017-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:

ClassOriginal FaceWeighted Average LifeCoupon (%)Coupon TypeSpreadOffered Price
AV1 $36,000,000 4.29 2.646 WAC S+27 101.96
AV2 $837,048,171 6.66 2.646 WAC S+45 100.81
Total $873,048,171          

 

Group 1 Collateral

UPB $873,048,171
Collateral 20 Fannie Mae DUS MBS
Geographic Distribution CT (29.4%), CA (29.8%), MA (15.5%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.79x
Weighted Average
Loan-to-Value (LTV)
60.8%

 

Settlement Date August 30, 2017
Lead Manager Citigroup
Co-Managers Amherst Pierpont Securities
Credit Suisse
The Williams Capital Group, L.P.

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2017-M10) available on the Fannie Mae GeMS Archive page http://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.

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.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.