Fannie Mae Multifamily Issues $28.5 Billion of Multifamily MBS in 2013
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Keosha Burns
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202-752-7840
WASHINGTON, DC – Fannie Mae (FNMA/OTC) issued approximately $28.5 billion of multifamily MBS in 2013, ending the year with multifamily MBS issuance of $7.0 billion1 in the fourth quarter. In 2012, Fannie Mae issued $33.1 billion total in MBS issuance. Fannie Mae also resecuritized $2.3 billion of DUS® MBS through the Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the fourth quarter.
"It was a successful year for the DUS program with MBS issuance reaching $28.5 billion," said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing, Fannie Mae. "We continued to expand the investor base for DUS through the issuance of GeMS, which had a record year with $10.2 billion of total issuance. We are looking forward to another strong year in 2014."
The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities. 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 and multifamily Mega securities.
Highlights of Fannie Mae’s multifamily activity in the fourth quarter of 2013 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the fourth quarter of 2013 totaled approximately $7.0 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 $2.3 billion in the fourth quarter of 2013. This issuance volume is composed of two Fannie Mae GeMS REMIC transactions. The total GeMS issuance was $10.2 billion in 2013 and was $10.0 billion in 2012. The combined Fannie Mae GeMS and ACES issuance backed by DUS MBS was $11.6 billion in 2013.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $3.0 billion of Fannie Mae multifamily mortgage securities from its portfolio in the fourth 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 Fourth Quarter of 2013
FNA 2013-M14, Priced on November 14, 2013
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
A |
$118,254,807 |
4.47 |
1.700 |
Fixed Rate |
S+37 |
100.24 |
FA |
$290,907,204 |
4.48 |
0.519 |
Floating Rate |
1mL+35 |
100.00 |
SA |
$290,907,204 |
4.02 |
6.481 |
Inverse IO |
Not offered |
Not offered |
X1 |
$409,162,011 |
4.02 |
0 |
WAC IO |
Not offered |
Not offered |
APT |
$249,649,728 |
8.51 |
2.527 |
Fixed/AFC |
Not offered |
Not offered |
A1 |
$89,376,889 |
5.44 |
2.402 |
Fixed/AFC |
S+55 |
101.00 |
A2 |
$454,740,672 |
9.84 |
3.329 |
Fixed/AFC |
S+58 |
99.75 |
AB1 |
$12,187,758 |
5.44 |
2.101 |
Fixed/AFC |
S+65 |
99.00 |
AB2 |
$62,010,091 |
9.84 |
3.399 |
Fixed/AFC |
S+68 |
99.50 |
X3 |
$618,315,410 |
8.70 |
0.379 |
WAC IO |
Not offered |
Not offered |
Total |
$1,277,127,149 |
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Lead Manager: Morgan Stanley
Co-Managers: Deutsche Bank and Nomura
FNA 2013-M13, Priced on October 11, 2013
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
A |
$205,337,995 |
4.10 |
1.600 |
Fixed Rate |
S+44 |
99.75 |
FA |
$388,004,241 |
4.08 |
0.524 |
Floating Rate |
1mL+35 |
100.00 |
SA |
$388,004,241 |
4.08 |
6.476 |
Inverse IO |
Not offered |
Not offered |
X1 |
$593,342,236 |
3.25 |
0.170 |
WAC IO |
Not offered |
Not offered |
APT |
$139,326,042 |
6.03 |
2.447 |
Fixed/AFC |
S+52 |
100.00 |
X2 |
$139,326,042 |
5.61 |
0.370 |
WAC IO |
Not offered |
Not offered |
A1 |
$52,322,765 |
5.10 |
2.624 |
WAC |
S+64 |
101.51 |
A2 |
$243,300,505 |
9.43 |
2.624 |
WAC |
S+71 |
93.26 |
Total |
$1,028,291,548 |
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Lead Manager: Deutsche Bank
Co-Managers: Citigroup and Bank of America Merrill Lynch
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 CMBS.
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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