News Release - Fannie Mae Provides Sustained Liquidity to the Multifamily Mortgage Market in the First Half of 2011 | Fannie Mae

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News Release

July 27, 2011

Fannie Mae Provides Sustained Liquidity to the Multifamily Mortgage Market in the First Half of 2011

Andrew Wilson

202-752-5168

WASHINGTON, DC — Fannie Mae (FNMA/OTC) today announced that in the first half of 2011, the company issued $10.3 billion in MBS backed by new multifamily acquisitions delivered by our lenders, and sold $5.3 billion in MBS pools and GeMSTM structured transactions, enhancing tradable float and supporting liquidity in the multifamily MBS market.

"In today's economic environment, Fannie Mae continues to deliver liquidity to the multifamily housing market and provide investment options to market participants," said Kimberly Johnson, Fannie Mae Vice President for Multifamily Capital Markets. "Through our multifamily MBS issuance (including DUS MBS, GeMSTM structured transactions and portfolio activities), Fannie Mae provided market participants with considerable volume and a variety of execution options in the first half of 2011."

Beginning in 2009, Fannie Mae made reinvigoration of its multifamily MBS business and broadening the investor base a top priority. By ramping up its MBS execution and transforming the multifamily capital markets business, Fannie Mae has shifted from being primarily a multifamily portfolio market participant to one that provides liquidity to the multifamily market mainly through securitization.

Fannie Mae provides the largest share of U.S. multifamily mortgage financing, and traditionally has been a leader in this market. The company's DUS MBS securities provide market participants with investment securities offering easily-modeled cash flows, superior call protection and positive convexity in defined maturities of 5-, 7- and 10-years. Fannie Mae's Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program consists of structured multifamily securities created from Fannie Mae's portfolio. Fannie Mae GeMSTM offer market participants block size investments, collateral diversity and pricing close to par through its multifamily REMICs (ACES) and multifamily Mega securities.

Highlights of Fannie Mae's activity in the first half of 2011 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes through June 30, 2011 totaled $10.3 billion.

2) GeMS ISSUANCE

Issuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $2.6 billion, including $1.2 billion in GeMSTM ACES and $1.4 billion in GeMSTM Megas through June 30, 2011.

3) SALES FROM PORTFOLIO

Fannie Mae's Capital Markets group has sold $5.3 billion of multifamily mortgage securities from its portfolio through June 30, 2011.

For additional information about Fannie Mae's multifamily MBS products and issuance please refer to Basics of Multifamily MBS and our MBSenger Publication "Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on www.fanniemae.com.


GeMSTM Issuance Year-to-Date through June 30, 2011


FNA 2011-M1, Priced on May 17, 2011

ClassCUSIPOriginal FaceWeighted Average LifeCouponCoupon TypeSpreadPrice
A1 31397UPD5 $30,225,000 4.09 1.981% Fixed Rate S+45 99.5
A2 31397UPE5 $59,800,000 8.76 3.607% Fixed Rate S+67 99.5
A3 31397UPF0 $353,842,465 9.84 3.763% Fixed Rate S+65 99.5
FA 31397UPG8 $140,122,610 9.31 1mo L+45, 7% Cap Fixed Rate L+45 100
SA 31397UPH6 $140,122,610 9.31 6.353% Inverse Interest Only Not offered Not offered
X 31397UPJ2 $583,990,075 9.31 0.272% Interest Only Not Offered Not Offered
Total   $583,990,075          


Lead Manager: Credit Suisse

Co-Managers: Amherst Securities Group, L.P. and Deutsche Bank Securities


FNA 2011-M2, Priced on Jun 17, 2011

Class CUSIP Original Face Weighted Average Life Coupon Coupon Type Spread Price
A1 31397U3L1 $41,197,000 3.89 2.070% Fixed Rate S+47 100.5
A2 31397U3M9 $41,795,000 8.99 3.710% Fixed Rate S+65 100.5
A3 31397U3N7 $342,229,854 9.77 3.740% Fixed Rate S+66 100.375
AB 31397U3K3 $57,984,798 9.13 3.730% Fixed Rate S+78 99.75
FA 31397U3P2 $110,559,670 9.12 1mo L+45, 7% Cap Floating Rate L+45 100.0
SA 31397U3Q0 $110,559,670 9.12 6.361% Inverse Interest Only Not Offered Not Offered
X 31397U3R8 $593,766,322 9.12 0.126% Interest Only Not Offered Not Offered
Total   $593,766,322          


Lead Manager: Amherst Securities Group LP

Co-Managers: Bank of America Merrill Lynch


Fannie Mae GeMS Megas

Month Mega Pool Coupon UPB (In Millions)
Jan-11 FN0000 3.584% $104
Jan-11 FN0001 3.763% $237
Jan-11 FN0002 3.309% $109
Mar-11 FN0003 4.301% $220
Mar-11 FN0004 3.632% $120
Mar-11 FN0005 3.375% $196
Mar-11 FN0006 3.421% $84
Mar-11 FN0007 3.459% $25
Mar-11 FN0008 3.383% $37
Mar-11 FN0009 3.416% $137
Mar-11 FN0010 3.841% $19
Mar-11 FN0013 3.462% $37
Mar-11 FN0014 3.104% $33
May-11 FN0018 3.462% $37
May-11 FN0022 3.104% $35
Total     $1,428

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 Investors page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov. Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.