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Press Release

Fannie Mae Issues $10.4 Billion of Multifamily MBS in the First Quarter of 2015

May 5, 2015

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $10.4 billion1 of multifamily MBS in the first quarter of 2015, primarily through its Delegated Underwriting and Servicing (DUS®) program.  Fannie Mae also resecuritized $3.4 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the first quarter of the year.

“We saw more than $15 billion in MBS and structured securities backed by DUS MBS in the first quarter of 2015,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. “The DUS MBS execution gives borrowers, lenders and investors more options and better pricing transparency than other multifamily financing executions and effectively distributes risk. Underwriting standards remained consistent and investor demand was strong – spreads tightened throughout the quarter.”

The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities ranging from five 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 first quarter of 2015 include the following:

1)      MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the first quarter of 2015 totaled $10.4 billion. 

2)      FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from collateral                selected by Fannie Mae Capital Markets totaled $3.4 billion in the first quarter of 2015.  This issuance volume was generated from three Fannie Mae GeMS REMIC transactions.  In addition, Fannie Mae issued $2.3 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the first quarter of 2015, adding to the liquidity of Fannie Mae DUS MBS. 

3)      FANNIE MAE SALES

Fannie Mae Capital Markets sold $4.4 billion of Fannie Mae multifamily mortgage securities from its portfolio in the first quarter of 2015.2

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 First Quarter of 2015

FNA 2015-M4, Priced on March 12, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$393,055,092

3.34

0.385

Floater/

WAC Cap

1mL+21

100.00

SA

$393,055,092

2.37

5.187

Inverse IO

Not Offered

Not Offered

AV1

$43,618,683

3.76

2.013

Fixed

S+22

101.00

AV2

$542,473,854

6.84

2.509

Fixed/AFC

S+38

101.00

ABV1

$5,948,002

3.76

1.761

Fixed

S+32

99.75

ABV2

$73,973,708

6.84

2.369

Fixed/AFC

S+44

99.75

X2

$666,014,247

6.18

0.679

WAC IO

Not Offered

Not Offered

Total

$1,059,069,339

 

 

 

 

 

Lead Manager:        Morgan Stanley
Co-Managers:         Citigroup, BofA Merrill Lynch, and Mischler Financial Group

FNA 2015-M3, Priced on February 12, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$315,891,089

3.10

0.392

Floater/

WAC Cap

1mL+22

100.00

SA

$315,891,089

2.14

4.777

Inverse IO

Not Offered

Not Offered

A1

$98,113,000

5.44

2.301

Fixed

S+36

101.00

A2

$639,223,000

9.66

2.723

Fixed

S+50

101.00

AB1

$13,380,000

5.44

2.141

Fixed

S+45

99.75

AB2

$87,166,295

9.66

2.625

Fixed

S+55

99.75

X2

$837,882,295

8.66

0.388

WAC IO

Not Offered

Not Offered

Total

$1,153,773,384

 

 

 

 

 

Lead Manager:        Goldman Sachs & Co.
Co-Managers:          Deutsche Bank and Wells Fargo

FNA 2015-M1, Priced on January 14, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$60,000,000

2.03

0.782

Fixed

E+5

100.00

ASQ2

$309,201,864

2.94

1.626

Fixed

S+26

101.00

X1

$369,201,864

2.79

3.833

WAC IO

Not Offered

Not Offered

A1

$99,809,000

5.66

2.177

Fixed

S+46

101.00

A2

$649,702,289

9.61

2.532

Fixed/AFC

S+52

101.00

AB1

$13,610,000

5.66

2.038

Fixed

S+56

99.75

AB2

$88,596,085

9.61

2.465

Fixed/AFC

S+60

99.75

X2

$851,717,374

9.09

0.444

WAC IO

Not Offered

Not Offered

Total

$1,220,919,238

 

 

 

 

 

Lead Manager:       Bank of America Merrill Lynch
Co-Managers:         Citigroup and Goldman Sachs & Co.

 

 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.


This release may contain 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 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.

Fannie Mae enables people to buy, refinance, or rent homes.

Visit us at: https://www.fanniemae.com.

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