Fannie Mae's MF MBS Issuance Hits $16.7B Through Third Quarter, on $20B Pace This Year

Fannie Mae GeMS Issuance Is Expected to Surpass $6 Billion by Year End

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that year-to-date through September, the company has issued $16.7 billion in multifamily MBS^[1], surpassing total issuance for all of 2010 and on pace to exceed $20 billion by year end. Year-to-date through September, Fannie Mae also resecuritized $4.1 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program and expects this resecuritization issuance to top $6 billion by the end of 2011. 

“Given the volatile market environment, Agency CMBS is thriving. Fannie Mae’s total activity, including MBS issuance, GeMS issuance and portfolio sales was the highest of any quarter this year. Over the past two years, we have seen a significant increase in securities available for trading. Our multifamily MBS outstanding now exceeds $90 billion,” said Kimberly Johnson, Vice President of Multifamily Capital Markets.

Fannie Mae provides the largest share of U.S. multifamily mortgage financing, and traditionally has been a leader in this market. The company’s DUS MBS securities provide market participants with investment securities offering easily-modeled cash flows, call protection and positive convexity in defined maturities of 5-, 7- and 10-years. Fannie Mae’s GeMS program consists of structured multifamily securities created from Fannie Mae’s portfolio. Fannie Mae GeMS offer market participants block size investments, 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 through the third quarter of 2011 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the third quarter of 2011 totaled $6.4 billion.  Year-to-date through September 30, 2011, new multifamily MBS business volumes totaled $16.7 billion. 

2)  FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from its portfolio totaled $1.5 billion in the third quarter of 2011.  Year-to-date through September 30, 2011, Fannie Mae issued $4.1 billion in GeMS securities, including $2.6 billion in GeMS ACES and $1.5 billion in GeMS Megas.

3)  FANNIE MAE SALES

Fannie Mae Capital Markets sold $2.5 billion of multifamily mortgage securities in the third quarter of 2011, including sales of GeMS.  During the first three quarters, sales totaled $7.8 billion.

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 2011

FNA 2011-M6, Priced on September 9, 2011

Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Offered Price
A1	3136A1AA3	$54,700,000	5.187	1.951%	Fixed Rate	100.5
A2	3136A1AB1	301,100,000	9.615	2.916%	Fixed Rate	100.5
AB	3136A1AC9	48,586,606	9.934	2.890%	Fixed Rate	99.75
X	3136A1AD7	404,386,606	8.935	1.456%	Interest Only	Not Offered
Total		$404,386,606

Lead Manager:   Credit Suisse

 

FNA 2011-M5, Priced on September 9, 2011 

Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Offered Price
A1	3136A04E4	$75,375,696	5.417	2.007%	Fixed Rate	100.5
A2	3136A07H4	408,700,000	9.789	2.940%	Fixed Rate	100.5
AB	3136A07J0	66,000,000	9.108	2.922%	Fixed Rate	99.75
X	3136A07K7	550,075,696	9.108	1.269%	Interest Only	Not Offered
Total		$550,075,696

Lead Manager:   Credit Suisse

Co-Manager:       Morgan Stanley

 

FNA 2011-M4, Priced on July 14, 2011 

Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Price
A1	3136A0FJ1	$51,698,937	5.36	2.548%	Fixed Rate	100.50
A2	3136A0FK8	289,884,241	9.83	3.726%	Fixed Rate	100.00
AB	3136A0FH5	46,019,809	9.15	3.682%	Fixed Rate	99.75
FE	3136A0FL6	16,927,167	5.37	1mo L+60, 6.5% Cap	Floating Rate	100.00
FN	3136A0FN2	96,902,122	9.83	1mo L+80, 6.5% Cap	Floating Rate	100.00
SE	3136A0FM4	16,927,167	5.36	5.714%	Inverse Interest Only	Not Offered
SN	3136A0FP7	96,902,122	9.33	5.514%	Inverse Interest Only	Not Offered
X	3136A0FQ5	501,432,276	8.73	0.266%	Interest Only	Not Offered
Total		$501,432,276

Lead Manager:   Bank of America Merrill Lynch

Co-Managers:     Amherst Securities Group LP, and Morgan Stanley

[1] Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio securitization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.

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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.