June 20, 2011Fannie Mae Prices $594 million Multifamily DUS REMIC under its GeMS Program
WASHINGTON, D.C. — Fannie Mae (FNMA/OTC) priced its second Multifamily DUS REMIC in 2011 totaling $594 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on Friday, June 17, 2011.
All classes of this security, FNA 2011-M2, are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. Yield maintenance prepayment premiums apply to all underlying loans. The structure includes four fixed-rate sequential pay classes, a floating rate class, an inverse IO class and a WAC/IO class.
FNA 2011-M2 employs a structure not previously used in a Fannie Mae GeMSTM transaction. For the fixed rate classes, all unscheduled principal payments and associated prepayment premiums will be distributed first to the AB class, thus enhancing the cash flow stability of the A1, A2 and A3 classes.
The structure details for the multi-tranche offering are included in the table below.
|Class||CUSIP||Original Face||Weighted Average Life||Coupon||Coupon Type||Spread||Price|
|FA||31397U3P2||$110,559,670||9.12||1mo L+45, 7% Cap||Floating Rate||L+45||100.0|
|SA||31397U3Q0||$110,559,670||9.12||6.361%||Inverse Interest Only||Not Offered||Not Offered|
|X||31397U3R8||$593,766,322||9.12||0.126%||Interest Only||Not Offered||Not Offered|
Collateral: 88 DUS Pools
Geographic Distribution: CA (24.28%), AZ (9.99%), NY (8.99%)
Debt Service Coverage Ratio (DSCR): 2.02x
Loan-to-Value (LTV): 63.84%
Settlement Date: 6/30/2011
Lead Manager: Amherst Securities Group LP
Co-Managers: Bank of America Merrill Lynch
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 Investors page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov. 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.