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Press Release

Fannie Mae Issues $17.9 Billion of Multifamily MBS in the Third Quarter of 2016

October 20, 2016

Pete Bakel

202-752-2034

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $17.9 billion1 of multifamily mortgage-backed securities (MBS) in the third quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®) program.  Fannie Mae also resecuritized $2.1 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program.

“Hats off to the Fannie Mae Multifamily Lenders for a fantastic third quarter,” said Josh Seiff, vice president of Multifamily Capital Markets & Trading, Fannie Mae. “When I look at our third quarter production, the numbers that are most impressive are 2.1 times actual DSCR (debt service coverage ratio) and 69 percent LTV (loan-to-value) ratio. Maintaining that level of credit quality while issuing nearly $18 billion in MBS to end investors is outstanding. It is a reflection of the strong credit culture created by a long standing risk-sharing partnership between Fannie Mae and the DUS lender community.”

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 third quarter of 2016 include the following:

  1. MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

    New multifamily MBS business volumes in the third quarter of 2016 totaled $17.9 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 $2.1 billion in the third quarter of 2016.  This issuance volume included two Fannie Mae GeMS REMIC transactions.  In addition, Fannie Mae issued $2.1 billion in Non-GeMS REMICs and Megas backed by DUS MBS collateral from the broker-dealer community in the third quarter of 2016, adding to the liquidity of Fannie Mae DUS MBS. 

  3. FANNIE MAE SALES

    Fannie Mae Capital Markets sold $3.7 billion of Fannie Mae multifamily mortgage securities from its portfolio in the third quarter of 2016.2

Fannie Mae GeMS Issuance in the Third Quarter of 2016

FNA 2016-M9, Priced on September 8, 2016

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered
Price

FA

$579,564,135

6.44

1.108

Floater/AFC

L+59

100.00

FX

$579,564,135

0.81

0.495

WAC IO

Not Offered

Not Offered

A1

$60,591,000

5.77

2.003

Fixed

S+56

101.00

A2

$444,364,282

9.62

2.292

Fixed

S+73

101.00

AB1

$8,263,000

5.77

1.800

Fixed

Not Available

Not Available

AB2

$60,595,000

9.62

2.217

Fixed

Not Offered

Not Offered

X2

$573,813,282

8.72

0.450

WAC IO

Not Offered

Not Offered

Total

$1,153,377,417

 

 

 

 

 

Lead Manager:    Morgan Stanley
Co-Managers:     Citigroup, KGS-Alpha Capital Markets, and Multi-Bank Securities

FNA 2016-M7, Priced on July 12, 2016.

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

FA

$190,212,689

6.17

1.118

Floater/AFC

L+67

99.93

FX

$190,212,689

0.56

0.772

WAC IO

Not Offered

Not Offered

AV1

$18,294,000

3.38

1.557

Fixed

S+43

100.50

AV2

$244,482,292

6.75

2.157

Fixed

S+64

102.00

X2

$262,776,292

6.06

1.831

WAC IO

Not Offered

Not Offered

A1

$44,097,000

5.92

2.037

Fixed

S+71

101.00

A2

$361,271,000

9.77

2.499

Fixed

S+100

101.00

AB1

$6,015,000

5.92

1.860

Fixed

S+76

99.75

AB2

$49,262,618

9.77

2.385

Fixed

S+103

99.75

X3

$460,645,618

6.62

0.851

WAC IO

Not Offered

Not Offered

Total

$913,634,599

 

 

  

 

 

Lead Manager:    Goldman, Sachs & Co.
Co-Managers:      Jefferies, KGS-Alpha Capital Markets, and Drexel Hamilton

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, MRB, ASAP purchases and DMBS.

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.

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.