Fannie Mae Prices $536 Million Green Multifamily DUS REMIC (FNA 2020-M46) Under Its GeMS Program
WASHINGTON, Oct. 16, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $536 million Green Multifamily DUS® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on October 15, 2020. FNA 2020-M46 marks the ninth Fannie Mae GeMS issuance of 2020.
"The M46 was the third GeMS deal of 2020 backed entirely by our Green MBS collateral," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "In addition to our traditional 10-year collateral, the M46 also offered investors a Green 15-year tranche for the first time. We continue to work to provide the same level of rigor and environmental impact to ESG investors across the yield curve."
"Our Green financing program continues to grow and evolve, and the M46 represents the exciting next evolution to the market," said Chrissa Pagitsas, Vice President, Enterprise Environmental, Social, Governance. "The Group 1 collateral pool includes our first Green Building Certified PHIUS+ certified deal. This is a first for the mortgage and Green Bonds industry – a securitized mortgage backed by a property meeting passive house standards. The Pax Futura property was successfully designed to meet Passive House Institute U.S.'s PHIUS+ green building certification standards for properties striving for net-zero energy usage. With microunits comprising half of its apartments, Pax Futura combines highly efficient construction, deep energy efficiency features, and renewable energy generation. This deal is a significant commitment on the part of the property owner and represents a major milestone not only for Fannie Mae and our lender partner, JLL Real Estate Capital, but also for the Green Bond market."
Fannie Mae's Multifamily Green Financing Business provides financing through several different Green product offerings, encouraging apartment building owners to make energy and water savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has issued $78.5 billion in Green MBS and $11 billion in Green GeMS since the program's inception. Read more about it here: https://www.fanniemae.com/multifamily/green-initiative
All classes of FNA 2020-M46 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 | Coupon (%) | Coupon | Spread | Offered |
Price | ||||||
A1 | $36,000,000 | 5.72 | 0.716 | Fixed | S+28 | 100 |
A2 | $359,480,942 | 9.14 | 1.323 | Fixed | S+40 | 102 |
A3 | $60,000,000 | 9.53 | 1.299 | Fixed | S+36 | 102 |
X1 | $395,480,942 | 8.38 | 1.143 | WAC IO | Not Offered | Not Offered |
X3 | $60,000,000 | 9.03 | 1.111 | WAC IO | Not Offered | Not Offered |
AL | $80,182,000 | 13.56 | 1.676 | Fixed | S+60 | 102 |
X2 | $80,182,000 | 13.08 | 1.507 | WAC IO | Not Offered | Not Offered |
Total | $535,662,942 |
Group 1 Collateral | |
UPB: | $455,480,942 |
Collateral: | 30 Green Fannie Mae DUS MBS |
Geographic Distribution: | NY (26.7%), TX (24.8%), WA (13.0%) |
Weighted Average Debt Service Coverage Ratio (DSCR): | 1.78x |
Weighted Average Loan-to-Value (LTV): | 63.7% |
Group 2 Collateral | |
UPB: | $80,182,000 |
Collateral: | 4 Green Fannie Mae DUS MBS |
Geographic Distribution: | CA (67.2%), MD (31.6%), TX (1.2%) |
Weighted Average Debt Service Coverage Ratio (DSCR): | 1.85x |
Weighted Average Loan-to-Value (LTV): | 72% |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M46) 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
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