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Press Release

Fannie Mae Issues $7.3 Billion of Multifamily MBS in the Third Quarter of 2015

October 19, 2015

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $7.3 billion1 of multifamily MBS in the third quarter of 2015, primarily through its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae also resecuritized $1.9 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the third quarter.

“Investors purchased more than $9 billion in new issue multifamily securities despite the jittery markets in August and September,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. “Fannie Mae Multifamily MBS stand out in this kind of market, providing greater spread stability than many other products due to consistent underwriting and lender risk sharing. Our MBS align the interests of the lender and the investor – it’s easier to invest when you’re confident that everyone is working towards the same goals.”

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 2015 include the following:

  1. MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

    New multifamily MBS business volumes in the third quarter of 2015 totaled $7.3 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 $1.9 billion in the third quarter of 2015. This issuance volume included two Fannie Mae GeMS REMIC transactions for $1.8 billion and one GeMS Mega transaction for $75.6 million. In addition, Fannie Mae issued $160 million in ACES REMICs and Non-GeMS Mega backed by DUS MBS collateral from the broker-dealer community in the third quarter of 2015, adding to the liquidity of Fannie Mae DUS MBS.

  3. FANNIE MAE SALES

    Fannie Mae Capital Markets sold $6.7 billion of Fannie Mae multifamily mortgage securities from its portfolio in the third 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 Third Quarter of 2015

FNA 2015-M12, Priced on September 10, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

FA

$634,129,442

3.51

0.540

Floater / WAC Cap

34 DM

99.96

SA

$634,129,442

2.56

4.862

Inverse IO

Not Offered

Not Offered

A1

$31,000,000

5.77

2.331

Fixed

S+58

100.00

A2

$416,292,899

9.64

2.792

WAC

S+75

98.97

X2

$447,292,899

8.91

0.032

WAC IO

Not Offered

Not Offered

TOTAL

$1,081,422,341

 

 

 

 

 
Lead Manager Bank of America Merrill Lynch
Co-Managers Barclays
Goldman, Sachs & Co.
CastleOak Securities, L.P.

 

FNA 2015-M11, Priced on July 16, 2015

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered Price

A1

$94,795,540

5.56

2.097

Fixed

S+40

99.00

A2FL

$200,000,000

9.53

0.628

Float/IRC

L+44

100.00

A2

$465,493,598

9.69

2.921

WAC

S+60

98.83

X1

$94,795,540

5.55

0.824

WAC IO

Not Offered

Not Offered

TOTAL

$760,289,138

 

 

 

 

 
Lead Manager Deutsche Bank Securities
Co-Managers Credit Suisse
KGS-Alpha Capital Markets
The Williams Capital Group, L.P.

 

1 Reflects 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 Commercial Mortgage-Backed Securities.

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.

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