Fannie Mae Prices $930 Million Multifamily DUS REMIC (FNA 2020-M42) Under Its GeMS Program
Sep 17, 2020, 16:15 ET
WASHINGTON, Sept. 17, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced its eighth Multifamily DUS® REMIC in 2020 totaling $930.3 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on September 15, 2020.
"We were pleased to be able to wrap up the quarter with the M42 and offer the market a positively convexed option backed by DUS 10/9.5 collateral," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "In a month full of competing issuances, the M42 was able to find demand for duration and price at spreads not seen in over six years."
All classes of FNA 2020-M42 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 |
A1 |
$111,000,000 |
5.86 |
0.785 |
Fixed |
S+30 |
100.50 |
A2 |
$619,284,372 |
9.76 |
1.270 |
Fixed |
S+39 |
101.89 |
A3 |
$200,000,000 |
9.82 |
1.244 |
Fixed |
S+35 |
102.00 |
X |
$730,284,372 |
8.74 |
0.301 |
WAC IO |
Not Offered |
Not Offered |
X3 |
$200,000,000 |
9.32 |
0.253 |
WAC IO |
Not Offered |
Not Offered |
Total |
$930,284,372 |
Group 1 Collateral |
|
UPB: |
$930,284,372 |
Collateral: |
148 Fannie Mae DUS MBS |
Geographic Distribution: |
NY (13.8%), WA (11.6%), CA (11.1%) |
Weighted Average Debt Service Coverage Ratio (DSCR): |
2.17x |
Weighted Average Loan-to-Value (LTV): |
59.1% |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M42) 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.
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