News Release

June 21, 2018

Fannie Mae Prices a $535 Million Green Multifamily DUS REMIC (FNA 2018-M8) Under Its GeMS Program

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its sixth Multifamily DUS® REMIC in 2018 totaling $535.3 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on June 20, 2018. The M8 marks the third Green GeMS issuance of 2018 and brings the program total to $5.5 billion in GeMS backed exclusively by Green MBS through Fannie Mae’s Green Financing Business.

“The M8 represents another step in the evolution of our Green Financing Business,” said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. “We were able to place approximately one-third of the M8 bonds with Socially Responsible Investment (SRI) funds. Fannie Mae recently was recognized by Climate Bonds Initiative as the world’s largest Green Bond issuer in 2017, and we are keen to tap into the global demand for Green Bonds and add to the liquidity of the Agency CMBS market.”

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 $27 billion in 2017.

“Fannie Mae is proud that its Multifamily Green Financing Program received a second opinion review from the Center for International Climate Research (CICERO) this June,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “The second opinion provides an independent, research-based evaluation of the environmental robustness of our Green Financing Program. The M8 GeMS issuance, together with the Cicero review, illustrates the continuing growth and development of Fannie Mae’s Green Financing Program. As a growing number of investors seek securities with Green outcomes, they can be confident that Fannie Mae will continue to provide attractive investment options that further the goal of increasing the environmental efficiency of America’s multifamily housing stock.”

All classes of FNA 2018-M8 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
A1 $30,000,000 6.75 3.325 WAC S+35 100.46
A2 $505,197,914 9.79 3.325 WAC S+55 98.87
Total $535,197,914          

 

Group 1 Collateral

UPB $535,197,914
Collateral 18 Fannie Mae DUS MBS
Geographic Distribution CA (30.0%), WA (28.4%), MI (12.4%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.79x
Weighted Average
Loan-to-Value (LTV)
63.0%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2018-M8) 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.