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