Fannie Mae Issues $17.9 Billion of Multifamily MBS in the Third Quarter of 2016
WASHINGTON, Oct. 20, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) announced today that the company issued $17.9 billion1 of multifamily MBS in the third quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae also resecuritized $2.1 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program.
"Hats off to the Fannie Mae Multifamily Lenders for a fantastic third quarter," said Josh Seiff, Vice President of Multifamily Capital Markets and Trading, Fannie Mae. "When I look at our third quarter production, the numbers that are most impressive are 2.1 times actual DSCR (debt service coverage ratio) and 69 percent LTV (loan-to-value) ratio. Maintaining that level of credit quality while issuing nearly $18 billion in MBS to end investors is outstanding. It is a reflection of the strong credit culture created by a long standing risk-sharing partnership between Fannie Mae and the DUS lender community."
The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities ranging from five to 30 years. Fannie Mae's GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. Features of Fannie Mae GeMS include consistent monthly issuance, block size transactions, collateral diversity, and pricing close to par.
Highlights of Fannie Mae's multifamily activity in the third quarter of 2016 include the following:
| 1) |
MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS |
| 2) |
FANNIE MAE GeMS ISSUANCE/STRUCTURED SECURITIES |
| 3) |
FANNIE MAE SALES |
For additional information about Fannie Mae's multifamily MBS products and issuance please refer to the Multifamily MBS webpage and the MBSenger® Publication "Over Twenty-Five Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.
Fannie Mae GeMS Issuance in the Third Quarter of 2016
FNA 2016-M9, Priced on September 8, 2016
| Class |
Original Face |
Weighted |
Coupon |
Coupon Type |
Spread |
Offered |
| FA |
$579,564,135 |
6.44 |
1.108 |
Floater/AFC |
L+59 |
100.00 |
| FX |
$579,564,135 |
0.81 |
0.495 |
WAC IO |
Not Offered |
Not Offered |
| A1 |
$60,591,000 |
5.77 |
2.003 |
Fixed |
S+56 |
101.00 |
| A2 |
$444,364,282 |
9.62 |
2.292 |
Fixed |
S+73 |
101.00 |
| AB1 |
$8,263,000 |
5.77 |
1.800 |
Fixed |
Not Available |
Not Available |
| AB2 |
$60,595,000 |
9.62 |
2.217 |
Fixed |
Not Offered |
Not Offered |
| X2 |
$573,813,282 |
8.72 |
0.450 |
WAC IO |
Not Offered |
Not Offered |
| Total |
$1,153,377,417 |
Lead Manager: Morgan Stanley
Co-Managers: Citigroup, KGS-Alpha Capital Markets, and Multi-Bank Securities
FNA 2016-M7, Priced on July 12, 2016
| Class |
Original Face |
Weighted |
Coupon |
Coupon Type |
Spread |
Offered |
| FA |
$190,212,689 |
6.17 |
1.118 |
Floater/AFC |
L+67 |
99.93 |
| FX |
$190,212,689 |
0.56 |
0.772 |
WAC IO |
Not Offered |
Not Offered |
| AV1 |
$18,294,000 |
3.38 |
1.557 |
Fixed |
S+43 |
100.50 |
| AV2 |
$244,482,292 |
6.75 |
2.157 |
Fixed |
S+64 |
102.00 |
| X2 |
$262,776,292 |
6.06 |
1.831 |
WAC IO |
Not Offered |
Not Offered |
| A1 |
$44,097,000 |
5.92 |
2.037 |
Fixed |
S+71 |
101.00 |
| A2 |
$361,271,000 |
9.77 |
2.499 |
Fixed |
S+100 |
101.00 |
| AB1 |
$6,015,000 |
5.92 |
1.860 |
Fixed |
S+76 |
99.75 |
| AB2 |
$49,262,618 |
9.77 |
2.385 |
Fixed |
S+103 |
99.75 |
| X3 |
$460,645,618 |
6.62 |
0.851 |
WAC IO |
Not Offered |
Not Offered |
| Total |
$913,634,599 |
Lead Manager: Goldman, Sachs & Co.
Co-Managers: Jefferies, KGS-Alpha Capital Markets, and Drexel Hamilton
1Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.
2Includes Fannie Mae GeMS sold and excludes sales of CMBS, MRB, ASAP purchases, and DMBS.
This release may contain forward-looking statements. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC"). 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 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.
References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.
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.
SOURCE Fannie Mae
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