Fannie Mae Prices 1.02 Billion Multifamily DUS REMIC (FNA 2013-M7) Under Its Fannie Mae GeMS Program
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Katherine Constantinou
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202-752-5403
WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its fifth Multifamily DUS® REMIC in 2013 totaling $1.02 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 16, 2013.
“We saw strong demand in FNA 2013-M7 at several points on the yield curve as Treasuries sold off and the curve steepened while the deal was in the market,” said Kimberly Johnson, Fannie Mae Senior Vice President of Multifamily Capital Markets. “The rising rate environment gives investors a chance to purchase bonds below par, which increased participation in the deal."
All classes of FNA 2013-M7 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 are included in the table below:
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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Group 1 Collateral
UPB: $428,055,531
Collateral: 61 Fannie Mae DUS MBS
Geographic Distribution: CA (42.6%), MI (11.7%), NC (8.8%)
Weighted Average
Debt Service Coverage Ratio (DSCR): 1.84x
Weighted Average
Loan-to-Value (LTV): 61.7%
Group 2 Collateral
UPB: $593,087,471
Collateral: 114 Fannie Mae DUS MBS
Geographic Distribution: CA (34.1%), TX (8.6%), FL (8.3%)
Weighted Average
Debt Service Coverage Ratio (DSCR): 2.05x
Weighted Average
Loan-to-Value (LTV): 65.6%
Settlement Date: May 30, 2013
Lead Manager: Goldman Sachs
Co-Managers: Credit Suisse and Wells Fargo
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2013-M7) available on Fannie Mae’s Basics of Multifamily MBS site at www.fanniemae.com.
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.
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