Fannie Mae Prices $860.4 Million Multifamily DUS REMIC (FNA 2016-M3) Under Its GeMS™ Program

Mar 11, 2016, 08:30 ET from Fannie Mae

WASHINGTON, March 11, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its third Multifamily DUS® REMIC in 2016 totaling $860.4 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on March 8, 2016.

"We have rallied over the past few weeks, but spreads for DUS MBS are still very attractive on a historical basis," said Josh Seiff Fannie Mae's Vice President of Capital Markets and Trading. "We are very pleased with the broad interest in the M3 deal – we had more than 30 accounts involved, including a handful of accounts new to the program. Lower spread volatility and consistent high credit quality are strong enticements for new investors in this market."

All classes of FNA 2016-M3 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 are in the table below:

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

 

Spread

Offered

Price

ASQ1

$35,000,000

3.46

1.468

Fixed

Not Available

Not Available

ASQ2

$285,116,260

6.23

2.263

Fixed/AFC

S+87

100.00

X1

$320,116,260

4.35

2.431

WAC IO

Not Offered

Not Offered

A1

$46,969,000

5.90

2.256

Fixed

S+71

101.00

A2

$428,616,391

9.83

2.702

Fixed

S+92

101.00

AB1

$6,387,000

5.90

2.056

Fixed

Not Available

Not Available

AB2

$58,280,763

9.83

2.606

Fixed

S+97

99.74

X2

$540,253,154

8.99

0.555

WAC IO

Not Offered

Not Offered

Total

$860,369,414

 

Group 1 Collateral

UPB:

$320,116,260

Collateral:

68 Fannie Mae DUS MBS

Geographic Distribution:

TX (17.2%), NY (21.7%), MA (15.8%)

Weighted Average

Debt Service Coverage Ratio (DSCR):

1.66x

Weighted Average

Loan-to-Value (LTV):

63.1%

Group 2 Collateral

UPB:

$540,253,154

Collateral:    

50 Fannie Mae DUS MBS

Geographic Distribution:

CA (21.9%), TX (17.3%), FL (10.9%)

Weighted Average

Debt Service Coverage Ratio (DSCR):

1.59x

Weighted Average

Loan-to-Value (LTV):

66.4%

Settlement Date:

March 31, 2016

Lead Manager:

Citigroup

Co-Managers:

Morgan Stanley

Amherst Pierpont Securities

Ramirez & Co., Inc.

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M3) available on the Fannie Mae GeMS Archive page on www.fanniemae.com.

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 enables people to buy, refinance, or rent homes. 

Visit us at: www.fanniemae.com/progress

Follow us on Twitter: http://twitter.com/FannieMae

SOURCE Fannie Mae



RELATED LINKS

http://www.fanniemae.com