Fannie Mae Maintains a Steady Pace of Multifamily Issuance in the Second Quarter
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Andrew Wilson
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202-752-5168
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued approximately $7.6 billion1 of multifamily MBS in the second quarter of 2013, backed by new multifamily loans delivered by its lenders. Fannie Mae also resecuritized $3.0 billion of DUS® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the second quarter.
“Our lenders continued to originate Multifamily DUS bonds at consistent levels in the second quarter,” said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing. “In addition, Fannie Mae’s Multifamily Capital Markets desk supported liquidity for lenders and borrowers by resecuritizing $3.0 billion through the GeMS program, helping attract a broader investor base to our Multifamily MBS.”
The company’s DUS MBS securities provide market participants with predictable cash flows and call protection in defined maturities of five, seven and ten 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 have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs (ACES®) and multifamily Mega securities.
Highlights of Fannie Mae’s multifamily activity in the second quarter of 2013 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the second quarter of 2013 totaled approximately $7.6 billion.
2) FANNIE MAE GeMS & ACES ISSUANCE
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 2013. This includes three Fannie Mae GeMS REMIC transactions. In addition, through the ACES program, Fannie Mae issued two multifamily REMICs backed by $692 million of dealer-contributed DUS MBS in the second quarter of 2013, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $5.5 billion of multifamily mortgage securities from its portfolio in the second quarter of 2013.2
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 Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on fanniemae.com.
Fannie Mae GeMS Issuance in the Second Quarter of 2013
FNA 2013-M9, Priced on June 12, 2013
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$50,500,000 |
3.33 |
0.982 |
Fixed Rate |
N+15 |
100.00 |
ASQ2 |
$381,659,343 |
4.90 |
1.825 |
Fixed Rate |
N+32 |
101.00 |
X1 |
$432,159,343 |
4.71 |
3.540 |
WAC IO |
Not Offered |
Not Offered |
A1 |
$89,700,000 |
5.18 |
1.976 |
Fixed Rate |
N+40 |
101.00 |
A2 |
$429,500,000 |
9.55 |
2.389 |
Fixed AFC |
N+64 |
95.39 |
AB1 |
$12,232,000 |
5.18 |
1.661 |
Fixed Rate |
N+50 |
99.00 |
AB2 |
$58,568,199 |
9.55 |
2.389 |
Fixed AFC |
N+68 |
94.79 |
X2 |
$590,000,199 |
8.79 |
0.078 |
WAC IO |
Not Offered |
Not Offered |
Total |
$1,022,159,542 |
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Lead Manager: Barclays
Co-Managers: Deutsche Bank and Jefferies
FNA 2013-M7, Priced on May 16, 2013
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$21,403,000 |
2.60 |
0.556 |
Fixed Rate |
S+10 |
100.00 |
ASQ2 |
$406,652,531 |
4.07 |
1.233 |
Fixed Rate |
S+26 |
101.00 |
X1 |
$428,055,531 |
3.51 |
4.267 |
WAC IO |
Not Offered |
Not Offered |
A1 |
$95,909,000 |
4.98 |
1.459 |
Fixed Rate |
S+31 |
101.00 |
A2 |
$426,007,000 |
9.52 |
2.280 |
Fixed Rate |
S+53 |
98.65 |
AB1 |
$13,078,000 |
4.98 |
1.315 |
Fixed Rate |
S+43 |
99.75 |
AB2 |
$58,093,471 |
9.52 |
2.497 |
WAC |
S+64 |
99.19 |
X2 |
$593,087,471 |
8.28 |
0.350 |
WAC IO |
T+140 |
1.81 |
Total |
$1,021,143,002 |
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Lead Manager: Goldman Sachs
Co-Managers: Credit Suisse and Wells Fargo
FNA 2013-M5, Priced on April 15, 2013
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$12,000,000 |
1.04 |
0.437 |
Fixed Rate |
E+10 |
100.00 |
ASQ2 |
$453,061,544 |
2.14 |
0.595 |
Fixed Rate |
S+20 |
100.00 |
X1 |
$465,061,544 |
1.60 |
4.313 |
WAC IO |
Not Offered |
Not Offered |
ASQ3 |
$61,200,000 |
3.82 |
1.172 |
Fixed Rate |
S+28 |
101.00 |
ASQ4 |
$226,700,000 |
7.26 |
1.919 |
Fixed Rate |
S+38 |
101.00 |
ASQ5 |
$158,486,099 |
8.32 |
2.207 |
Fixed Rate |
S+47 |
101.00 |
X2 |
$446,386,099 |
8.32 |
2.404 |
WAC IO |
J+145 |
14.66 |
Total |
$911,447,643 |
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Lead Manager: Citigroup
Co-Managers: RBS and Morgan Stanley
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.
Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. 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 Quarterly Report on Form 10-Q and 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.
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