Fannie Mae Multifamily Provides Consistent MBS Issuance with $3.5 Billion in the First Quarter 2014
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Callie Dosberg
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202-752-3117
WASHINGTON, DC – Fannie Mae (FNMA/OTC) issued approximately $3.5 billion1 of multifamily MBS in the first quarter of 2014, backed by new multifamily loans delivered by its lenders. Fannie Mae also resecuritized $3.3 billion of DUS® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the first quarter of the year.
“We continued to be a consistent issuer of structured securities through our GeMS program, with higher issuance in Q1 2014 than Q1 2013, despite the broader market slowdown,” said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing, Fannie Mae.
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 first quarter of 2014 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the first quarter of 2014 totaled approximately $3.5 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.3 billion in the first quarter of 2014. This issuance volume is composed of three Fannie Mae GeMS REMIC transactions. Total GeMS issuance volume in the first quarter of 2012 and 2013 was $2.6 billion and $3.2 billion, respectively.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $3.9 billion of Fannie Mae multifamily mortgage securities from its portfolio in the first 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 First Quarter of 2014
FNA 2014-M3, Priced on March 7, 2014
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$50,000,000 |
1.41 |
0.418 |
Fixed |
E+5 |
100.00 |
ASQ2 |
$319,650,401 |
1.69 |
0.558 |
Fixed |
E+12 |
100.00 |
X1 |
$369,650,401 |
1.16 |
4.734 |
WAC IO |
Not offered |
Not offered |
A1 |
$91,119,022 |
5.69 |
2.613 |
Fixed |
Not offered |
Not offered |
A2 |
$508,799,473 |
9.78 |
3.501 |
Fixed |
S+50 |
101.00 |
AB1 |
$12,425,322 |
5.69 |
2.442 |
Fixed |
Not offered |
Not offered |
AB2 |
$69,381,746 |
9.78 |
3.462 |
Fixed |
S+63 |
99.75 |
X2 |
$681,725,563 |
8.73 |
0.233 |
WAC IO |
Not offered |
Not offered |
Total |
$1,051,375,964 |
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Lead Manager: Deutsche Bank
Co-Managers: Barclays and Jefferies
FNA 2014-M2, Priced on February 12, 2014
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$37,000,000 |
0.97 |
0.342 |
Fixed |
S+5 |
100.00 |
ASQ2 |
$332,654,846 |
1.45 |
0.478 |
Fixed |
S+12 |
100.00 |
X1 |
$369,654,846 |
0.91 |
4.522 |
WAC IO |
Not offered |
Not offered |
ASV1 |
$48,900,000 |
3.90 |
1.916 |
Fixed |
S+40 |
101.00 |
ASV2 |
$305,174,490 |
6.77 |
2.777 |
Fixed |
S+37 |
101.00 |
X2 |
$354,074,490 |
5.84 |
0.545 |
WAC IO |
Not offered |
Not offered |
A1 |
$67,037,520 |
5.24 |
2.476 |
Fixed |
S+50 |
101.00 |
A2 |
$382,388,487 |
9.74 |
3.513 |
Fixed |
S+55 |
101.00 |
AB1 |
$9,141,480 |
5.24 |
2.140 |
Fixed |
S+58 |
99.00 |
AB2 |
$52,143,885 |
9.74 |
3.491 |
Fixed |
S+68 |
99.75 |
X3 |
$510,711,372 |
8.50 |
0.414 |
WAC IO |
T+130 |
2.67 |
Total |
$1,234,440,708 |
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Lead Manager: Citigroup
Co-Managers: RBS and Goldman Sachs & Co.
FNA 2014-M1, Priced on January 9, 2014
Class |
Original Face |
Weighted Average Life |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
$50,000,000 |
3.48 |
1.3880 |
Fixed |
S+18 |
100.00 |
ASQ2 |
$429,866,013 |
4.74 |
2.3230 |
Fixed/AFC |
S+34 |
101.00 |
X1 |
$479,866,013 |
4.12 |
3.0964 |
WAC IO |
Not offered |
Not offered |
A1 |
$102,940,000 |
4.89 |
2.3250 |
Fixed |
S+50 |
100.00 |
A2 |
$393,658,399 |
9.38 |
3.3958 |
WAC |
S+58 |
98.00 |
Total |
$976,464,412 |
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Lead Manager: Bank of America Merrill Lynch
Co-Managers: Credit Suisse and BNP Paribas
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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