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Press Release

Fannie Mae Multifamily MBS Issuance Nearly Doubled in the Third Quarter of 2014

October 28, 2014

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that, in the third quarter, the company issued approximately $9.1 billion1of multifamily MBS backed by new multifamily loans delivered by its lenders, which is nearly double the volume issued in the second quarter of 2014.  Fannie Mae also resecuritized $3.1 billion of DUS® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the third quarter of the year.

"We are extremely pleased to report approximately $9.1 billion in Fannie Mae multifamily MBS for the third quarter," said Hilary Provinse, Senior Vice President for Multifamily Customer Engagement, Fannie Mae.  "With the continued solid performance of our multifamily MBS and steady multifamily fundamentals, the third quarter presented a great opportunity for Fannie Mae to provide increased liquidity to the market."

The company's DUS MBS securities provide market participants with highly 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 and multifamily Mega securities.

Highlights of Fannie Mae’s multifamily activity in the third quarter of 2014 include the following:

1)      MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the third quarter of 2014 totaled approximately $9.1 billion. 

2)      FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.1 billion in the third quarter of 2014.  This issuance volume was generated from three Fannie Mae GeMS REMIC transactions.  Through the third quarter of 2014, we have issued approximately $9.5 billion in GeMS REMICs.  In addition, Fannie Mae issued one multifamily REMIC backed by $622.2 million of dealer-contributed DUS MBS in the third quarter of 2014, adding to the liquidity of Fannie Mae DUS MBS.

3)      FANNIE MAE SALES

Fannie Mae Capital Markets sold $3.3 billion of Fannie Mae multifamily mortgage securities from its portfolio in the third quarter of 2014.2

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 Third Quarter of 2014

FNA 2014-M10, Priced on September 10, 2014

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$152,963,000

3.13

1.518

Fixed

S+20

99.94

ASQ2

$833,442,248

4.99

2.171

Fixed/AFC

S+23

100.00

X1

$986,405,248

4.25

0.110

WAC IO

T+50, 100CPY

0.45

Total

$986,405,248

 

 

 

 

 

Lead Manager:  Goldman, Sachs & Co.
Co-Managers:    BofA Merrill Lynch and Barclays

 

 

FNA 2014-M9, Priced on August 13, 2014

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered
Price

ASQ1

$75,241,882

1.82

0.678

Fixed

E+5

100.00

ASQ2

$426,370,666

2.42

1.462

Fixed

S+18

101.00

X1

$501,612,548

2.33

4.243

WAC IO

Not Offered

Not Offered

A1

$57,767,509

5.86

2.511

Fixed

S+37

101.00

A2

$336,509,265

9.85

3.103

Fixed/AFC

S+43

101.00

AB1

$7,877,387

5.86

2.388

Fixed

S+48

99.75

AB2

$45,887,627

9.85

3.055

Fixed/AFC

S+53

99.75

X2

$448,041,788

8.83

0.266

WAC IO

Not Offered

Not Offered

Total

$949,654,336

 

 

 

 

 

Lead Manager:  Morgan Stanley
Co-Managers:    BNP Paribas and Credit Suisse

 

 

FNA 2014-M8, Priced July 11, 2014 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$733,295,597

3.55

0.433

Floater/ WAC Cap

1mL+25

100.00

SA

$733,295,597

2.59

4.731

Inverse IO

1.75 ytf,

100CPY

10.23

A1

$58,189,598

5.30

2.382

Fixed

S+32

101.00

A2

$305,856,690

9.80

3.110

Fixed/AFC

S+34

101.00

AB1

$6,465,511

5.30

2.164

Fixed

S+38

99.50

AB2

$33,984,076

9.80

2.975

Fixed

S+40

99.00

X2

$404,495,875

8.67

0.494

WAC IO

J+100

3.29

Total

$1,137,791,472

 

 

 

 

 

Lead Manager:  Deutsche Bank
Co-Managers:   Citigroup and Wells Fargo

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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