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Press Release

Fannie Mae Issues $9.8 Billion of Multifamily MBS in the Fourth Quarter of 2015

January 22, 2016

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued $9.8 billion1 of multifamily MBS in the fourth quarter of 2015, primarily through its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae also resecuritized $3.3 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program.

“We finished the year strong with $9.8 billion in new issue securities in the fourth quarter, and near record volume of $42 billion for the year,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. “DUS lenders priced Multifamily MBS nearly every single trading day in 2015. The lenders also retain credit risk on those loans. That’s a combination of risk alignment and pricing transparency you don’t see in other commercial real estate securities. Our model has served borrowers and investors well for the last 28 years – we expect to continue to lead the market in credit quality, risk alignment and transparency in 2016.”

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 fourth quarter of 2015 include the following:

  1. MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
    New multifamily MBS business volumes in the fourth quarter of 2015 totaled $9.8 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 $3.3 billion in the fourth quarter of 2015.  This issuance volume included three Fannie Mae GeMS REMIC transactions for $3.1 billion and three GeMS Mega transactions for $230.7 million.  In addition, Fannie Mae issued $3.7 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the fourth quarter of 2015, adding to the liquidity of Fannie Mae DUS MBS.
  3. FANNIE MAE SALES
    Fannie Mae Capital Markets sold $9.6 billion of Fannie Mae multifamily mortgage securities from its portfolio in the fourth 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 Fourth Quarter of 2015

FNA 2015-M17, Priced on December 11, 2015

CLASS ORIGINAL FACE WEIGHTED AVERAGE LIFE COUPON (%) COUPON TYPE SPREAD OFFERED PRICE
FA1 $108,891,675 6.31 1.260 Floater/AFC Not Offered Not Offered
FA $637,627,053 5.99 1.129 Floater/AFC 100 DM 99.51
FX $637,627,053 6.00 0.108 WAC IO Not Offered Not Offered
A1 $57,982,000 5.66 2.520 Fixed S+65 101.00
A2 $363,116,807 9.73 3.038 WAC S+89 100.23
X3 $421,098,807 9.17 0.071 WAC IO Not Offered Not Offered
TOTAL $1,167,617,535          

Lead Manager:   Goldman, Sachs & Co.
Co-Managers:     Morgan Stanley, Amherst Pierpont Securities, Great Pacific Securities

FNA 2015-M15, Priced on November 6, 2015

CLASS

ORIGINAL FACE

WEIGHTED AVERAGE LIFE

COUPON (%)

COUPON TYPE

SPREAD

OFFERED
PRICE

ASQ1

$214,601,000

1.39

0.848

Fixed

E+7

99.88

ASQ2

$90,034,592

2.54

1.898

Fixed

S+31

101.00

X1

$304,635,592

1.35

4.323

WAC IO

Not Offered

Not Offered

A1

$65,043,000

5.72

2.623

Fixed

S+62

101.00

A2

$459,715,000

9.73

2.923

Fixed / AFC

S+80

99.24

AB1

$8,870,000

5.72

2.383

Fixed

S+62

99.75

AB2

$62,688,668

9.73

2.980

WAC

S+86

99.60

X2

$596,316,668

8.80

0.092

WAC IO

Not Offered

Not Offered

TOTAL

$900,952,260

 

 

 

 

 

Lead Manager:       Goldman, Sachs & Co.
Co-Managers:         BofA Merrill Lynch, Jefferies, Loop Capital Markets

FNA 2015-M13, Priced on October 7, 2015

CLASS

ORIGINAL FACE

WEIGHTED AVERAGE LIFE

COUPON (%)

COUPON TYPE

SPREAD

OFFERED
PRICE

ASQ1

$70,000,000

1.95

0.856

Fixed

S+10

100.00

ASQ2

$254,128,796

2.95

1.646

Fixed

S+29

101.00

X1

$324,128,796

2.29

4.084

WAC IO

Not Offered

Not Offered

A1

$72,495,266

5.46

2.353

Fixed

S+65

101.00

A2FL

$200,000,000

9.60

0.866

Float / IRC

L+67

100.00

A2

$420,856,164

9.60

2.800

WAC

S+81

99.40

X2

$72,495,266

5.44

0.447

WAC IO

Not Offered

Not Offered

TOTAL

$1,017,480,226

 

 

 

 

 

Lead Manager:    Deutsche Bank Securities
Co-Managers:      Barclays, Morgan Stanley, Amherst Pierpont Securities, Mischler Financial Group

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 contains 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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