Fannie Mae Supports the Multifamily Market with Consistent Issuance in the Third Quarter of 2012
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Andrew Wilson
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202-752-5168
WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that the company issued approximately $8.5 billion1 of multifamily MBS in the third quarter of 2012, backed by new multifamily loans delivered by our lenders. Year-to-date issuance is $22.3 billion. Fannie Mae also resecuritized $4.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the third quarter.
“A protracted, low interest rate environment has kept the borrowing rate below 4 percent, and consequently, originations have been robust,” said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.
The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten years. Fannie Mae’s GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs (ACES) and multifamily Mega securities.
Highlights of Fannie Mae’s multifamily activity in the third quarter of 2012 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the third quarter of 2012 totaled approximately $8.5 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $4.0 billion in the third quarter of 2012. This includes four Fannie Mae GeMS REMIC transactions. In addition, dealers issued two multifamily REMICs backed by $1.2 billion of DUS MBS in the third quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $4.9 billion of multifamily mortgage securities from its portfolio in the third quarter of 2012.2
For additional information about Fannie Mae’s multifamily MBS products and issuance please refer to Basics of Multifamily MBS and our MBSenger Publication “Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on fanniemae.com.
Fannie Mae GeMS Issuance in the Third Quarter of 2012
FNA 2012-M13, Priced on September 19, 2012
Class |
CUSIP |
Original FACE |
Weighted Average Life (Years) |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
3136A8G20 |
$25,000,000 |
2.44 |
1.012 |
Fixed Rate |
S+15 |
101 |
ASQ2 |
3136A8G38 |
$593,152,202 |
4.70 |
1.246 |
Fixed Rate |
S+22 |
101 |
X1 |
3136A8G46 |
$618,152,202 |
4.13 |
4.184 |
Interest Only |
Not Offered |
Not Offered |
A1 |
3136A8G53 |
$72,200,000 |
5.53 |
1.403 |
Fixed Rate |
S+25 |
101 |
A2 |
3136A8G61 |
$368,870,450 |
9.66 |
2.377 |
Fixed Rate |
S+50 |
101 |
AB1 |
3136A8G79 |
$9,800,000 |
5.54 |
1.268 |
Fixed Rate |
S+35 |
99.75 |
AB2 |
3136A8G87 |
$49,916,275 |
9.66 |
2.332 |
Fixed Rate |
S+60 |
99.75 |
X2 |
3136A8G95 |
$500,786,725 |
8.56 |
0.790 |
Interest Only |
Not Offered |
Not Offered |
Total |
|
$1,118,938,927 |
|
|
|
|
|
Lead Manager: RBS
Co-Managers: Bank of America Merrill Lynch and Jeffries
FNA 2012-M11, Priced on September 10, 2012
Class |
CUSIP |
Original FACE |
Weighted Average Life (Years) |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
FA |
3136A77E6 |
$699,627,969 |
5.97 |
1mL + 50 |
Floating Rate |
50 DM |
99.951 |
FX |
3136A77F3 |
$699,627,969 |
5.97 |
Not Offered |
Interest Only |
Not Offered |
Not Offered |
Total |
|
$699,627,969 |
|
|
|
|
|
Lead Manager and Sole Bookrunner: Morgan Stanley
FNA 2012-M9, Priced on August 9, 2012
Class |
CUSIP |
Original FACE |
Weighted Average Life (Years) |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
3136A7J78 |
$75,000,000 |
3.96 |
0.978 |
Fixed Rate |
S+23 |
100 |
ASQ2 |
3136A7L26 |
$567,530,081 |
5.24 |
1.513 |
Fixed Rate |
S+30 |
101 |
X1 |
3136A72B7 |
$642,530,081 |
4.62 |
4.297 |
Interest Only |
Not Offered |
Not Offered |
A1 |
3136A72C5 |
$118,855,000 |
5.28 |
1.553 |
Fixed Rate |
S+33 |
101 |
A2 |
3136A72D3 |
$574,627,235 |
9.53 |
2.482 |
Fixed Rate |
S+60 |
101 |
AB1 |
3136A72E1 |
$16,207,000 |
5.28 |
1.372 |
Fixed Rate |
S+40 |
99.75 |
AB2 |
3136A72F8 |
$78,358,760 |
9.53 |
2.434 |
Fixed Rate |
S+70 |
99.75 |
X2 |
3136A72G6 |
$788,047,995 |
8.39 |
0.0897 |
Interest Only |
Not Offered |
Not Offered |
Total |
|
$1,430,578,076 |
|
|
|
|
|
Lead Manager: J.P. Morgan
Co-Managers: Bank of America Merrill Lynch and RBS
FNA 2012-M8, Priced on July 12, 2012
Class |
CUSIP |
Original FACE |
Weighted Average Life (Years) |
Coupon (%) |
Coupon Type |
Spread |
Offered Price |
ASQ1 |
3136A7LP5 |
$68,000,000 |
3.41 |
1.166 |
Fixed Rate |
S+25 |
101 |
ASQ2 |
3136A7MJ8 |
$186,507,000 |
5.40 |
1.520 |
Fixed Rate |
S+40 |
101 |
ASQ3 |
3136A7MK5 |
$235,899,128 |
6.58 |
1.801 |
Fixed Rate |
S+50 |
101 |
X1 |
3136A7ML3 |
$490,406,128 |
5.23 |
Not Offered |
Interest Only |
Not Offered |
Not Offered |
A1 |
3136A7MM1 |
$48,800,000 |
5.37 |
1.539 |
Fixed Rate |
S+42 |
101 |
A2 |
3136A7MN9 |
$213,765,920 |
9.75 |
2.349 |
Fixed Rate |
S+65 |
101 |
AB1 |
3136A7MP4 |
$6,647,591 |
5.37 |
1.362 |
Fixed Rate |
S+49 |
99.75 |
AB2 |
3136A7MQ2 |
$29,154,963 |
9.75 |
2.305 |
Fixed Rate |
S+75 |
99.75 |
X2 |
3136A7MR0 |
$298,368,474 |
8.53 |
Not Offered |
Interest Only |
Not Offered |
Not Offered |
Total |
|
$788,774,602 |
|
|
|
|
|
Lead Manager: Citigroup
Co-Managers: Amherst and RBS
1 Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.
2 Includes Fannie Mae GeMS sold.
Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"). 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 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.References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.
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.