Fannie Mae Prices $896 Million Multifamily DUS REMIC (FNA 2014-M4) 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 fourth Multifamily DUS® REMIC in 2014 totaling $896.4 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program on April 11, 2014.
“Investors had to contend with some rate volatility while the book was building,” said Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets. “Once rates stabilized a bit, we saw strong demand for shorter bonds backed by seasoned collateral and 10-year cash flows.”
All classes of FNA 2014-M4 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 |
ASQ1 |
$44,048,000 |
1.68 |
0.484 |
Fixed |
E+5 |
100.00 |
ASQ2 |
$396,429,273 |
2.29 |
1.272 |
Fixed |
S+17 |
101.00 |
X1 |
$440,477,273 |
1.75 |
4.321 |
WAC IO |
Not offered |
Not offered |
A1 |
$62,122,000 |
5.34 |
2.476 |
Fixed |
Not offered |
Not offered |
A2 |
$339,099,000 |
9.80 |
3.346 |
Fixed |
S+49 |
101.00 |
AB1 |
$8,472,000 |
5.34 |
2.321 |
Fixed |
Not offered |
Not offered |
AB2 |
$46,240,039 |
9.80 |
3.205 |
Fixed |
S+59 |
99.00 |
X2 |
$455,933,039 |
8.69 |
0.296 |
WAC IO |
J+125 |
2.17 |
Total |
$896,410,312 |
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Group 1 Collateral
UPB: $440,477,273
Collateral: 103 Fannie Mae DUS MBS
Geographic Distribution: CA (38.4%), GA (7.6%), MD (6.7%)
Weighted Average
Debt Service Coverage Ratio (DSCR): 1.58x
Weighted Average
Loan-to-Value (LTV): 65.6%
Group 2 Collateral
UPB: $455,933,039
Collateral: 56 Fannie Mae DUS MBS
Geographic Distribution: CA (27.4%), TX (17.6%), MA (8.7%)
Weighted Average
Debt Service Coverage Ratio (DSCR): 1.41x
Weighted Average
Loan-to-Value (LTV): 69.3%
Settlement Date: April 30, 2014
Lead Manager: Goldman Sachs & Co.
Co-Managers: Citigroup and Morgan Stanley
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M4) 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.com and on the SEC's Web site at www.sec.gov.Fannie Mae enables people to buy, refinance, or rent a home.
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