Fannie Mae Priced $796 Million Green Multifamily DUS REMIC (FNA 2021-M3G) Under Its GeMS Program
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced a $796 million Green Multifamily DUS® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on September 21, 2021. FNA 2021-M3G marks the tenth Fannie Mae GeMS issuance of 2021.
“It was a busy month of new issuance across asset classes, and we were pleased to wrap up the quarter with our third Green GeMS deal of 2021 – pushing our total program-to-date Green GeMS issuance to $13.4 billion,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “With the M3G, we were once again looking to assemble a diverse pool of green multifamily MBS collateral for the market, providing investors with solid credit performance and quantifiable environmental impact across 14 different states.”
Now in the second decade of its Multifamily Green Financing business, Fannie Mae remains committed to generating positive environmental and social impact through our two Multifamily Green products: our Green Building Certification (GBC) program and Green Rewards, our energy- and water consumption-reduction program. Combined, we have issued over $97 billion of Multifamily MBS backed by these financing products. Through the Fannie Mae GeMS program, we have re-securitized into REMICs an additional $13.4 billion backed by Green MBS.
“Our REMIC-structured product enables us to pull from both of our green financing programs into a single investment opportunity,” said Lisa Bozzelli, Senior Director, Multifamily Capital Markets. “For the M3G, 32 of the 34 multifamily properties backing the MBS used our Green Rewards program to make energy and water efficiency retrofits that meet our program requirements, enabling these older, less efficient properties to reduce consumption and realize utility cost savings for their tenants. The Fannie Mae Green Rewards program has been rated "light-to-medium green" by CICERO, a Second Party Opinion (SPO) provider, in recognition of the program's strong governance."
More information on Fannie Mae’s Green Bond programs can be found here.
All classes of FNA 2021-M3G are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. The structure details for the multi-tranche offering can be found in the table below:
|Class||Original Face||Weighted Average Life||Coupon (%)||Coupon Type||Spread||Offered Price|
|X||$38,474,000||6.14||0.069||WAC IO||Not Offered||Not Offered|
Group 1 Collateral
|Collateral||33 Fannie Mae Green DUS MBS|
|Geographic Distribution||CA (43.61%), FL (15.63%), AZ (11.94%)|
Debt Service Coverage Ratio (DSCR)
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M3G) available on the Fannie Mae GeMS Archive page.
About Multifamily Green Bonds
Fannie Mae is committed to driving positive impact, building a stronger, safer, and more resilient housing finance system that creates affordable, sustainable housing opportunities for homebuyers and renters across the country. Our Green efforts support the Multifamily housing market by financing communities that meet energy- and water-saving standards. We offer investors green bonds that build upon our mission where the underlying collateral positively impacts housing infrastructure and the environment. For more information on our multifamily green bonds, visit our multifamily green bonds website.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. 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 U.S. Securities and Exchange Commission (“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.