News Release

December 01, 2017

Fannie Mae Prices $1.6 Billion Multifamily DUS REMIC (FNA 2017-M15) Under Its GeMS Program

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its twelfth Multifamily DUS® REMIC in 2017 totaling $1.6 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on November 29, 2017. The M15 transaction included two groups of collateral – five tranches – that were backed by loans originated under the Fannie Mae Green Financing Business and securitized as Green DUS MBS.

“We capped off 2017 with the $1.6 billion M15 GeMS deal this week, bringing the year’s total GeMS issuance to $12 billion over 12 deals,” said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. “We are fortunate to have such a solid network of broker/dealers and investors who can get a deal like the M15 done despite competing issuances and end-of-year portfolio constraints. These market participants have created the liquidity that will enable Fannie Mae to issue over an estimated $60 billion in single pool DUS MBS during the year – including the issuance of over $20 billion in Green MBS and $3 billion in Green GeMS. This banner year would not have been possible without these individuals, and we look forward to continuing to grow the program with them in 2018.”

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, with over $20 billion in securities issuance in 2017.

“We continue to innovate through Fannie Mae’s Green Financing business,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “The M15 transaction represents the firm’s fourth GeMS offering with Green collateral – this time using 10-year collateral with shorter prepayment protection. It is another example of the flexibility and diversity of Green financing and DUS product offerings available – attracting new borrowers to the program and new investors to the securities.”

All classes of FNA 2017-M15 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 $19,000,000 3.48 2.637 WAC S+20 101.21
AV2 $429,353,182 6.67 2.637 WAC S+40 100.15
ATS1* $25,600,000 6.45 2.987 Fixed/WAC Cap S+49 101.50
ATS2* $562,257,594 9.57 3.136 WAC S+66 101.19
X2* $25,600,000 5.54 0.149 WAC IO Not Offered Not Offered
A1* $63,350,000 5.76 2.959 WAC Not Offered Not Offered
A2* $495,636,706 9.48 2.959 WAC Not Offered Not Offered
Total $1,595,197,482          

* Tranches backed by Green MBS.

 

Group 1 Collateral

UPB $448,353,182
Collateral 29 Fannie Mae DUS MBS
Geographic Distribution CA (43.3%), OR (18.7%), AZ (9.3%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.73x
Weighted Average
Loan-to-Value (LTV)
62.5%

 

Group 2 Collateral

UPB $587,857,594
Collateral 18 Fannie Mae Green DUS MBS
Geographic Distribution CA (41.7%), TX (30.5%), CO (8.6%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.66x
Weighted Average
Loan-to-Value (LTV)
61.5%

 

Group 3 Collateral

UPB $558,986,706
Collateral 18 Fannie Mae Green DUS MBS
Geographic Distribution AZ (16.2%), FL (14.6%), TX (14.2%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.30x
Weighted Average
Loan-to-Value (LTV)
70.7%

 

Settlement Date December 29, 2017
Lead Manager Credit Suisse
Co-Managers Morgan Stanley
KGS-Alpha Capital Markets
Drexel Hamilton

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2017-M15) 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.