Fannie Mae Priced $691 Million Multifamily DUS REMIC (FNA 2021-M13) Under Its GeMS Program

Milestone SOFR Offering Reinforces Fannie Mae's Commitment to LIBOR Transition

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May 17, 2021, 16:45 ET

WASHINGTON, May 17, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $691 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 12, 2021. FNA 2021-M13 marks the sixth Fannie Mae GeMS issuance of 2021.

"With the M13, Fannie Mae marks another milestone in the market's transition away from LIBOR with its first CMBS backed by Secured Overnight Financing Rate (SOFR)-indexed collateral," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "The Group 1 collateral comprises our ARM 7-6 capped, floating-rate product, which has been SOFR-based since late 2020. The M13 also includes two fixed-rate groups of collateral and marks another GeMS program first with an A3 tranche backed by 12-year collateral. The A3 tranche offers a more call-protected option for investors requiring a more predictable maturity window. We continue to look for ways to attract new investors to the DUS and GeMS market and to help transition the market away from LIBOR."

Through external engagement, including participation on the Alternative Reference Rates Committee (ARRC) and its working groups, and internal coordination through dedicated LIBOR transition program offices, Fannie Mae ceased purchasing and issuing LIBOR-based products and launched new SOFR-based offerings in 2020. Fannie Mae will continue to prepare for legacy LIBOR contract conversion in 2023 and will share additional information about its LIBOR transition efforts and milestones to provide full transparency to all stakeholders. For more information on Fannie Mae's LIBOR transition, visit our website and read our FAQs.

All classes of FNA 2021-M13 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
FA	$36,773,762	6.40	0.290	Floater/AFC	30-day SOFR avg +28	99.98
FX	$36,773,762	0.72	0.863	WAC IO	Not Offered	Not Offered
A1	$26,400,000	6.61	1.337	Fixed	S+8	100
A2	$316,963,510	9.83	1.659	WAC	S+14	98.62
X	$26,400,000	6.58	0.322	WAC IO	Not Offered	Not Offered
2A1	$55,000,000	7.19	1.489	Fixed	S+14	100
2A2	$181,198,967	11.64	1.684	WAC	S+22	96.45
2A3	$75,000,000	11.83	1.460	Fixed	Not Available	Not Available
X2	$55,000,000	7.18	0.195	WAC IO	Not Offered	Not Offered
X3	$75,000,000	11.33	0.224	WAC IO	Not Offered	Not Offered
Total	$691,336,239

Group 1 Collateral

UPB:	$36,773,762
Collateral:	10 Fannie Mae DUS MBS
Geographic Distribution:	MI (22.3%), LA (17.2%), AL (16.6%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.88x
Weighted Average Loan-to-Value (LTV):	64.95%

Group 2 Collateral

UPB:	$343,363,510
Collateral:	26 Fannie Mae DUS MBS
Geographic Distribution:	NY (27.9%), TN (21.1%), PA (18.5%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.76x
Weighted Average Loan-to-Value (LTV):	64.19%

Group 3 Collateral

UPB:	$311,198,967
Collateral:	57 Fannie Mae DUS MBS
Geographic Distribution:	TX (16.8%), NH (16.1%), FL (10.8%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.33x
Weighted Average Loan-to-Value (LTV):	71.69%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M13) available on the Fannie Mae GeMS Archive page.

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.

SOURCE Fannie Mae