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Press Release

Fannie Mae Prices $1.22 Billion Multifamily DUS REMIC (FNA 2015-M1) Under GeMS Program

January 21, 2015

Katherine Constantinou

202-752-5403

WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its first Multifamily DUS® REMIC in 2015 totaling $1.22 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 14, 2015.

"We saw strong demand for FNA 2015-M1 despite the tough market conditions.  Rates are moving fast and there's a tremendous amount of new issue paper out there. Investors have a lot of choices – it is hard to get their focus – but this deal clearly did," said Josh Seiff, Fannie Mae's Vice President of Multifamily Capital Markets Trading.  "No other securitized product has a comparable requirement for lenders to hold a first-loss piece – the DUS lender, the investor and Fannie Mae all have an interest in the strong performance of the underlying mortgage loans.  This is evident in the performance of DUS MBS over the last twenty some years and you can see this in the resilience and liquidity of our GeMS deals in the market."

All classes of FNA 2015-M1 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 in the table below:

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$60,000,000

2.03

0.782

Fixed

E+5

100.00

ASQ2

$309,201,864

2.94

1.626

Fixed

S+26

101.00

X1

$369,201,864

2.79

3.833

WAC IO

Not Offered

Not Offered

A1

$99,809,000

5.66

2.177

Fixed

S+46

101.00

A2

$649,702,289

9.61

2.532

Fixed/AFC

S+52

101.00

AB1

$13,610,000

5.66

2.038

Fixed

S+56

99.75

AB2

$88,596,085

9.61

2.465

Fixed/AFC

S+60

99.75

X2

$851,717,374

9.09

0.444

WAC IO

Not Offered

Not Offered

Total

$1,220,919,238

 

 

 

 

 

Group 1 Collateral
UPB:                                                                 $369,201,864
Collateral:                                                       91 Fannie Mae DUS MBS
Geographic Distribution:                             NY (36%), CA (15%), PA (14%)
Weighted Average
Debt Service Coverage Ratio (DSCR):     1.55x
Weighted Average
Loan-to-Value (LTV):                                     59.7%

Group 2 Collateral
UPB:                                                                  $851,717,374
Collateral:                                                        65 Fannie Mae DUS MBS
Geographic Distribution:                             CA (21%), VA (13%), FL (10%)
Weighted Average
Debt Service Coverage Ratio (DSCR):      1.54x
Weighted Average
Loan-to-Value (LTV):                                     70.4%

 

Settlement Date:                                            January 30, 2015

Lead Manager:                                               Bank of America Merrill Lynch
Co-Managers:                                                Citigroup and Goldman Sachs & Co.

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2015-M1) available on the Fannie Mae GeMS Archive page on 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.comand on the SEC's Web site at www.sec.gov.

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