Fannie Mae Prices $513 Million Multifamily DUS REMIC Under Its GeMS Program
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Katherine Constantinou
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202-752-5403
WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its eighth Multifamily DUS REMIC in 2011 totaling $513 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on December 13, 2011.
“The pricing of this deal punctuates a strong year for our Fannie Mae GeMS program. There was renewed interest in floaters, and investors still had cash to put to work heading into year end, so we saw some particularly large orders for 11-M9. GeMS issuance volume was $6 billion this year, surpassing last year. Since 2010, Fannie Mae has issued 15 MF REMIC deals, and I expect that volumes will continue to increase in 2012, as demand for Agency CMBS remains elevated,” said Kimberly Johnson, Vice President of Multifamily Capital Markets.
All classes of FNA 2011-M9 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. Yield maintenance prepayment premiums apply to all underlying loans. The structure details for the multi-tranche offering are included in the table below.
Class |
CUSIP |
Original Face |
Weighted Average Life |
Coupon |
Coupon Type |
Spread |
Offered Price |
A1 |
3136A2W33 |
$101,252,108 |
6.66 |
2.322 |
Fixed Rate |
+55 |
100.50 |
A2 |
3136A2W41 |
$212,725,692 |
8.87 |
2.821 |
Fixed Rate |
+70 |
100.50 |
AB |
3136A2W58 |
$42,815,155 |
8.16 |
2.773 |
Fixed Rate |
+85 |
99.75 |
FA
|
3136A2W66 |
$155,998,913 |
8.19 |
1mo L+65 7.0% Cap |
Floating Rate |
+65 |
100.00 |
SA
|
3136A2W74 |
$155,998,913 |
7.83 |
n/a |
Inverse Interest Only |
Not offered |
Not offered |
X |
3136A2W82 |
$512,791,868 |
7.82 |
n/a |
Interest Only |
Not offered |
Not offered |
Total |
|
$512,791,868 |
|
|
|
|
|
Collateral: 134 Fannie Mae DUS MBS
Geographic Distribution: CA (28%), NY (12%), TX (11%)
Weighted Average
Debt Service Coverage Ratio (DSCR): 1.83x
Weighted Average
Loan-to-Value (LTV): 63.7%
Settlement Date: 12/29/2011
Lead Manager: Bank of America Merrill Lynch
Co-Managers: Amherst Securities Group, LP and J.P. Morgan
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M9) available on Fannie Mae’s Basics of Multifamily MBS (PDF) 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.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.