News Release

January 24, 2020

Fannie Mae Prices $873 Million Green Multifamily DUS REMIC (FNA 2020-M1) Under Its GeMS Program

Matthew Classick

202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced its first Multifamily DUS® REMIC in 2020 totaling $873 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 22, 2020. FNA 2020-M1 is the first Green Fannie Mae GeMS issuance of 2020.

“The 2020-M1 marked our twelfth GeMS issuance backed by Green MBS collateral, bringing our total Green GeMS issuance to $9.9 billion – and building off of our $22.8 billion in Green MBS issued in 2019,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “We were pleased that the deal was able to capture the recent spread tightening in the market, with the A2 tranche pricing inside of a 50-basis-point spread over swaps.”

“The M1 demonstrates Fannie Mae’s continued commitment to positive environmental and social impact as we head into the tenth year of our Multifamily Green Financing Business,” said Chrissa Pagitsas, Vice President, Enterprise Environmental, Social, Governance. “Through year-end 2019, we have issued over $74 billion in Green MBS in an effort to support the reduction of utility costs for families and individual tenants, as well as the reduction of greenhouse gases through retrofits to existing, aging multifamily housing in the United States. We are dedicated to the rigor of our framework and the transparency in our reporting, and we continue to evolve the program as the market for Green and Social bonds matures.”

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 issued $74.5 billion in Green MBS and $9.9 billion in Green GeMS since the program’s inception. Read more about it here: https://www.fanniemae.com/multifamily/green-initiative

All classes of FNA 2020-M1 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 can be found in the table below:

Class Original Face Weighted Average Life Coupon (%) Coupon Type Spread Offered Price
A1 $91,000,000 6.39 2.151 Fixed S+43 100.50
A2 $608,016,683 9.64 2.444 Fixed S+49 101.99
A3 $174,000,000 9.68 2.404 Fixed S+45 101.99
X $699,016,683 8.78 0.207 WAC IO Not Offered Not Offered
X3 $174,000,000 9.18 0.209 WAC IO Not Offered Not Offered
Total $873,016,683          

 

Group 1 Collateral

UPB $873,016,683
Collateral 28 Fannie Mae Green DUS MBS
Geographic Distribution NV (35.1%), FL (34.15%), NJ (7.39%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.47x
Weighted Average
Loan-to-Value (LTV)
68.6%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M1) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.

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 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 fanniemae.com and follow us on twitter.com/FannieMae.