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Press Release

Fannie Mae Issues $14.5 Billion of Multifamily MBS in the Second Quarter of 2015

July 21, 2015

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $14.5 billion1 of multifamily MBS in the second quarter of 2015, primarily through its Delegated Underwriting and Servicing (DUS®) program.  Fannie Mae also resecuritized $3.0 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program and issued $1.6 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the second quarter of 2015.

“Fannie Mae’s Lender partners had a great second quarter – production was robust and credit quality remained very strong.  Investors bought more than $19 billion in new issue Fannie Mae Multifamily securities during the quarter - including both MBS and structured products,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae.  “Globally, there was a lot going on in Q2 – a lot for investors to track. Despite that turbulence, DUS spreads were pretty stable.  Investors trust our risk sharing model – that demand translates into a consistent, reliable execution for Multifamily borrowers.”

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 second quarter of 2015 include the following:

1)      MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the second quarter of 2015 totaled $14.5 billion. 

2)      FANNIE MAE GeMS ISSUANCE/STRUCTURED SECURITIES

Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.0 billion in the second quarter of 2015.  This issuance volume was generated from three Fannie Mae GeMS REMIC transactions.  In addition, Fannie Mae issued $1.6 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the second quarter of 2015, adding to the liquidity of Fannie Mae DUS MBS.

3)      FANNIE MAE SALES

Fannie Mae Capital Markets sold $3.9 billion of Fannie Mae multifamily mortgage securities from its portfolio in the second 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 Second Quarter of 2015

FNA 2015-M10, Priced on June 12, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

FA

$488,671,969

3.33

0.434

Floater/WAC Cap

S+25

100

SA

$488,671,969

3.33

4.975

Inverse IO

Not Offered

Not Offered

A1

$74,165,000

7.24

2.631

Fixed

S+45

99.75

A2

$412,357,071

11.51

3.092

Fixed/AFC

S+65

99

X2

$486,522,071

10.86

0.171

WAC IO

Not Offered

Not Offered

Total

$975,194,040

 

 

 

 

 

Lead Manager:        Citigroup Global Markets, Inc
Co-Managers:          Deutsche Bank Securities, Amherst Pierpont Securities and Drexel Hamilton

 

FNA 2015-M8, Priced on May 12, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

FA

$332,214,052

3.12

0.356

Floater/

WAC Cap

S+17

100.00

SA

$332,214,052

5.11

5.113

Inverse IO

Not Offered

Not Offered

A1

$91,141,000

5.49

2.344

Fixed

S+32

101.00

A2

$525,395,000

9.59

2.900

Fixed/AFC

S+51

100.75

AB1

$12,701,000

5.49

2.097

Fixed

S+32

99.75

AB2

$71,644,844

9.59

2.829

Fixed/AFC

S+56

99.75

X2

$702,881,844

8.55

0.285

WAC IO

Not Offered

Not Offered

Total

$1,035,095,896

 

 

 

 

 

Lead Manager:        Credit Suisse Securities
Co-Managers:         Jefferies, Morgan Stanley and Great Pacific Securities

 

FNA 2015-M7, Priced on April 15, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

ASQ1

$67,950,850

2.14

0.882

Fixed

S+5

100.00

ASQ2

$245,812,862

2.82

1.550

Fixed

S+15

101.00

X1

$313,763,712

2.20

3.986

WAC IO

Not Offered

Not Offered

A1

$70,485,005

5.72

2.113

Fixed

S+33

101.00

A2

$539,538,900

9.58

2.590

Fixed

S+52

101.00

AB1

$9,611,592

5.72

1.897

Fixed

S+35

99.75

AB2

$73,573,485

9.58

2.502

Fixed

S+58

99.75

X2

$693,208,982

8.69

0.530

WAC IO

Not Offered

Not Offered

Total

$1,006,972,696

 

 

 

 

 

Lead Manager:       Deutsche Bank Securities
Co-Managers:         Goldman, Sachs & Co., Jefferies and Loop Capital Markets

 

 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. 

2 Includes 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 and Quarterly Report on Form 10-Q 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.

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