Press Release

March 11, 2020

Fannie Mae Prices $1.18 Billion Multifamily DUS REMIC (FNA 2020-M8) Under Its GeMS Program

WASHINGTON, DC – March 11, 2020 – Fannie Mae (FNMA/OTCQB) priced its third Multifamily DUS® REMIC in 2020 totaling $1.18 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on March 10, 2020.

“In a week marked by contagion concerns, record low yields, and dislocation in certain markets, we have been pleased with the way that DUS and GeMS spreads have held.” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “The positive convexity of the call protected DUS MBS is appealing in a week like this, and the M8 offers investors the opportunity to pick up a low premium, Agency CMBS deal backed by $972 million in 10-year call protected fixed-rate collateral.”

All classes of FNA 2020-M8 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 $99,260,000 6.46 1.56 Fixed Not Offered Not Offered
A2 $633,125,322 9.87 1.82 Fixed S+79 102
A3 $240,000,000 9.90 1.78 Fixed S+75 102
X $732,385,322 8.97 0.70 WAC IO Not Offered Not Offered
X3 $240,000,000 9.40 0.71 WAC IO Not Offered Not Offered
AL $208,736,872 14.30 2.01 Fixed Not Offered Not Offered
X2 $208,736,872 13.87 0.80 WAC IO Not Offered Not Offered
Total $1,181,122,194          

 

Group 1 Collateral

UPB $972,385,322
Collateral 85 Fannie Mae DUS MBS
Geographic Distribution IN (14.15%), GA (13.57%), TN (11.74%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.51x
Weighted Average
Loan-to-Value (LTV)
68.53%

 

Group 2 Collateral

UPB $208,736,873
Collateral 19 Fannie Mae DUS MBS
Geographic Distribution NC (46.33%), FL (17.57%), NV (15.06%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.35x
Weighted Average
Loan-to-Value (LTV)
63.6%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M8) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.

 

About Fannie Mae
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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.