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Press Release

Fannie Mae Prices Its First Green REMIC Tranches as Part of $1.0 Billion Multifamily DUS REMIC

February 15, 2017

Katie Penote


WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its first GeMS REMIC tranches backed exclusively by its Green MBS collateral today. The FNA 2017-M2 transaction is the firm’s second Multifamily DUS® REMIC in 2017 under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program. The M2 transaction included two tranches, the A1 and the A2, which are backed by 30 loans originated under the Fannie Mae Green Financing Business and securitized as Green DUS MBS.

“This deal is another first for the Fannie Mae Multifamily Platform. Fannie Mae has set the standard for multifamily credit quality and risk sharing for almost 30 years. Now we’re excited to offer the first Green Agency CMBS deal,” said Josh Seiff, Fannie Mae’s Vice President of Capital Markets and Trading. “We had a number of new investors who focus on green and socially responsible investing participate in this deal. We’re proud to be able to lead the way with a Multifamily mortgage product that truly benefits communities as well as borrowers, lenders, and investors.”

Fannie Mae’s Multifamily Green Financing Business provides financing through several different green product offerings, encouraging apartment building owners to make energy- and water-savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has grown the book of business each year, culminating in the issuance of over $3.5 billion in 2016.

“The M2 represents one more step in Fannie Mae’s journey to realize social, environmental, and financial benefits through its innovative financial tools and business strategy,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “The M2 A1 and A2 tranches included loans secured by collateral that achieved a Green Building Certification such as LEED, ENERGY STAR®, or Green Globes, or was targeting a 20 percent or greater reduction in energy or water consumption. The end result will be better quality housing with a lower environmental impact and positive cash flows.”

All classes of FNA 2017-M2 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:


Original Face

Weighted Average Life

Coupon (%)

Coupon Type















Not Offered

Not Offered























Group 1 Collateral

UPB $393,280,663
Collateral 39 Fannie Mae DUS MBS
Geographic Distribution TX (56.4%), GA (21.1%), FL (5.2%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
Weighted Average
Loan-to-Value (LTV)


Group 2 Collateral

UPB $611,702,936
Collateral 30 Fannie Mae DUS MBS
Geographic Distribution TX (23.0%), CA (19.3%), GA (8.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
Weighted Average
Loan-to-Value (LTV)


Settlement Date February 28, 2017
Lead Manager Citigroup
Co-Managers Nomura
KGS-Alpha Capital Markets
CastleOak Securities

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2017-M2) available on the Fannie Mae GeMS Archive page on Additional information on Fannie Mae’s Green Financing Business can be found on

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 and on the SEC’s Web site at

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 and follow us on