Fannie Mae Prices $926.6 Million Multifamily DUS REMIC (FNA 2016-M2) Under Its GeMS™ Program

Feb 18, 2016, 13:20 ET from Fannie Mae

WASHINGTON, Feb. 18, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its second Multifamily DUS® REMIC in 2016 totaling $926.6 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on February 9, 2016.

"One of the strengths of the DUS program is the ability to offer borrowers more flexible terms than other securitized lending platforms," said Josh Seiff Fannie Mae's Vice President of Capital Markets and Trading.  "This deal included our ARM 7-6™ (i.e., 7-year loan with 6% lifetime interest rate cap) floating rate MBS and a group of seasoned, fixed-rate MBS with about 20 years remaining to maturity. All of the tranches were oversubscribed in a quick-moving syndicate process despite general market volatility at the time. This execution demonstrated the value of Fannie Mae's flexible execution in bridging the divide between borrower needs and investor demand."

All classes of FNA 2016-M2 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

FA

$183,863,467

6.52

1.276

Floater/AFC

S+85

99.91

FX

$183,863,467

0.86

0.326

WAC IO

Not Offered

Not Offered

AV1

$45,639,000

3.38

1.470

Fixed

S+53

100.00

AV2

$419,454,000

6.60

2.152

Fixed

S+83

100.00

ABV1

$6,224,000

3.38

1.443

Fixed

Not Offered

Not Offered

ABV2

$57,198,178

6.60

2.131

Fixed

S+85

99.75

X2

$528,515,178

5.84

1.027

WAC IO 

Not Offered 

Not Offered 

AL

$214,196,385

12.18

3.471

Fixed

S+150

102.00

X3

$214,196,385

4.39

1.944

WAC IO

Not Offered

Not Offered

Total

$926,575,030

 

Group 1 Collateral             

UPB:                                     

$183,863,467

Collateral:                              

26 Fannie Mae DUS MBS

Geographic Distribution:             

FL (16.8%), IN (12.4%), TX (11.8%)

Weighted Average      

Debt Service Coverage Ratio (DSCR):     

2.36x

Weighted Average    

Loan-to-Value (LTV):               

70.2%

Group 2 Collateral              

UPB:                                 

$528,515,178

Collateral:                            

68 Fannie Mae DUS MBS

Geographic Distribution:            

MD (24.9%), NY (15.9%), TX (12.5%)

Weighted Average       

Debt Service Coverage Ratio (DSCR):      

1.61x

Weighted Average        

Loan-to-Value (LTV):                

63.5%

Group 3 Collateral          

UPB:                         

$214,196,385

Collateral:                             

86 Fannie Mae DUS MBS

Geographic Distribution:               

CA (45.4%), NY (12.0%), PA (10.4%)

Weighted Average      

Debt Service Coverage Ratio (DSCR):    

1.85x

Weighted Average     

Loan-to-Value (LTV):                    

56.3%

Settlement Date:                  

February 29, 2016

Lead Manager:                      

Credit Suisse

Co-Managers:                            

Bank of America Merrill Lynch Securities Inc

KGS-Alpha Capital Markets

Multi-Bank Securities Inc

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M2) 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. 

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SOURCE Fannie Mae



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