Fannie Mae Prices $763.0 Million Multifamily DUS REMIC (FNA 2017-M5) Under Its GeMS Program
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Matthew Classick
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202-752-3662
WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its fifth Multifamily DUS® REMIC in 2017 totaling $763.0 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 9, 2017.
“We saw great investor response on both shorter, floating-rate bonds and 12-year, fixed-rate bonds in this deal,” said Josh Seiff, Fannie Mae’s Vice President of Capital Markets and Trading. “More than 40 accounts bought bonds. This kind of execution really highlights the ability of the Fannie Mae DUS platform to match borrower needs with investor demand across the yield curve.”
All classes of FNA 2017-M5 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 |
FA1 |
$16,979,530 |
6.26 |
1.665 |
Floater/AFC |
Not Offered |
Not Offered |
FA2 |
$43,203,985 |
6.24 |
1.665 |
Floater/AFC |
Not Offered |
Not Offered |
FA3 |
$74,834,075 |
6.26 |
1.665 |
Floater/AFC |
67 DM |
99.90 |
FX1 |
$135,017,590 |
0.66 |
0.632 |
WAC IO |
Not Offered |
Not Offered |
FA |
$231,842,340 |
6.46 |
1.525 |
Floater/AFC |
49 DM |
99.90 |
FX |
$231,842,340 |
0.80 |
0.611 |
WAC IO |
Not Offered |
Not Offered |
A1 |
$60,938,000 |
7.29 |
2.727 |
Fixed/AFC |
S+53 |
100.00 |
A2 |
$335,224,697 |
11.70 |
3.306 |
WAC |
S+72 |
101.00 |
Total |
$763,022,627 |
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Group 1 Collateral
UPB | $135,017,590 |
Collateral | 19 Fannie Mae DUS MBS |
Geographic Distribution | CO (32.0%), FL (20.4%), CA (11.4%) |
Weighted Average Debt Service Coverage Ratio (DSCR) |
1.57x |
Weighted Average Loan-to-Value (LTV) |
74.5% |
Group 2 Collateral
UPB | $231,842,340 |
Collateral | 29 Fannie Mae DUS MBS |
Geographic Distribution | TX (37.6%), FL (15.8%), IN (11.4%) |
Weighted Average Debt Service Coverage Ratio (DSCR) |
2.10x |
Weighted Average Loan-to-Value (LTV) |
73.7% |
Group 3 Collateral
UPB | $396,162,697 |
Collateral | 33 Fannie Mae DUS MBS |
Geographic Distribution | TX (18.0%), WA (15.1%), NJ (11.5%) |
Weighted Average Debt Service Coverage Ratio (DSCR) |
1.32x |
Weighted Average Loan-to-Value (LTV) |
73.9% |
Settlement Date | May 31, 2017 |
Lead Manager | Amherst Pierpont Securities |
Co-Managers | Citigroup KGS-Alpha Capital Markets Multi-Bank Securities |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2017-M5) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.
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 helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. 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 fanniemae.com and follow us on twitter.com/fanniemae.