News Release

January 10, 2019

Fannie Mae Prices a $996.5 Million Green Multifamily DUS REMIC (FNA 2019-M1) Under Its GeMS Program

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced its first Multifamily DUS® REMIC in 2019 totaling $996.5 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on January 8, 2019. 

"With the 19-M1, we launched our first Green GeMS deal of the year," said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. "This marks Fannie Mae's ninth Green GeMS deal; the desk continues to bring alternative Green investments to the Green MBS market, while providing the same solid credit performance to our established DUS and GeMS investors."

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 issued over $51 billion in Green MBS since the program’s inception. Read more about Fannie Mae's green initiative here.

"The M1 demonstrates Fannie Mae’s continued commitment to positive environmental and social impact," said Chrissa Pagitsas, Director, Multifamily Green Financing Business. "Because the M1 is fully collateralized by our Green Rewards MBS, the deal supports the reduction of greenhouse gases, as well as the reduction of utility costs for families and individual tenants through retrofits to existing, aging Multifamily housing in the United States. Cicero’s second opinion rating of our Green framework highlights the strong governance surrounding our Green Rewards program."

All classes of FNA 2019-M1 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:

Class Original Face Weighted Average Life Coupon (%) Coupon Type Spread Offered Price
A1 $81,500,000 6.24 3.355 FIX S+50 100.99
A2 $915,087,256 9.54 3.554 WAC S+72 101.22
X $81,500,000 6.22 0.199 WAC/IO Not Offered Not Offered
Total $996,587,256          

 

Group 1 Collateral

UPB $996,587,256
Collateral 61 Fannie Mae DUS MBS
Geographic Distribution CA (24.9%), GA (22.1%), FL (19.8%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.46x
Weighted Average
Loan-to-Value (LTV)
66.2%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2019-M1) 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.