Fannie Mae Multifamily MBS Issuance Increased Thirty Percent in the Second Quarter of 2014

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News Release

August 05, 2014

Fannie Mae Multifamily MBS Issuance Increased Thirty Percent in the Second Quarter of 2014

Callie Dosberg

202-752-3117

WASHINGTON, DC – The pace of Fannie Mae (FNMA/OTC) multifamily MBS issuance jumped thirty percent in the second quarter of 2014, as the company issued approximately $4.6 billion1 of multifamily MBS backed by new multifamily loans delivered by its lenders. Fannie Mae also resecuritized $3.2 billion of DUS® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the second quarter of the year. 

“We saw an increase in loan deliveries from our DUS lenders in Q2 and the activity for our securities was robust with total issuance increasing thirty percent from Q1,” said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing, Fannie Mae.  “GeMS issuance remained consistent, and the flexibility of the program allowed us to structure seasoned Fixed+1TM hybrid-rate collateral from our portfolio to meet the strong investor demand for floating-rate paper.”

The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten years.  Fannie Mae’s GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets.  Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs and multifamily Mega securities. 

Highlights of Fannie Mae’s multifamily activity in the second quarter of 2014 include the following: 

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the second quarter of 2014 totaled approximately $4.6 billion.  

2)  FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.2 billion in the second quarter of 2014.  This issuance volume was generated over three Fannie Mae GeMS REMIC transactions.  In addition, Fannie Mae issued one multifamily REMIC backed by $632.9 million of dealer-contributed DUS MBS in the second quarter of 2014, adding to the liquidity of Fannie Mae DUS MBS. 

3)  FANNIE MAE SALES

Fannie Mae Capital Markets sold approximately $3.7 billion of Fannie Mae multifamily mortgage securities from its portfolio in the second quarter of 2014.2 

For additional information about Fannie Mae’s multifamily MBS products and issuance please refer to the Multifamily MBS webpage and the MBSenger® Publication “Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on fanniemae.com. 

Fannie Mae GeMS Issuance in the Second Quarter of 2014

FNA 2014-M6, Priced on June 12, 2014 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$586,689,568

3.11

0.442

Floater/ WAC Cap

S+29

99.97

SA

$586,689,568

2.15

5.073

WAC IO (Inverse)

Not offered

Not offered

A1

$38,462,000

3.50

1.829

Fixed

S+31

101.00

A2

$346,171,000

6.75

2.679

Fixed/AFC

S+31

101.00

AB1

$5,245,000

3.50

1.468

Fixed

S+40

99.50

AB2

$47,205,293

6.75

2.432

Fixed/AFC

S+41

99.00

X2

$437,083,293

5.97

0.304

WAC IO

Not offered

Not offered

Total

$1,023,772,861

 

 

 

 

 

Lead Manager:  Goldman, Sachs & Co.
Co-Managers:    BNP Paribas and Deutsche Bank

FNA 2014-M5, Priced on May 9, 2014 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$780,423,392

2.08

0.502

Floater/ WAC Cap

S+35

99.97

SA

$780,423,392

2.09

4.777

Inverse IO

(5.10%) ytf, 100CPY

5.19

ASQ1

$46,000,000

2.74

0.986

Fixed

S+12

100.00

ASQ2

$413,767,336

4.46

2.034

Fixed

S+25

101.00

X2

$459,767,336

4.28

3.643

WAC IO

Not offered

Not offered

Total

$1,240,190,728

 

 

 

 

 

Lead Manager:   Credit Suisse
Co-Managers:     Deutsche Bank and Jefferies

FNA 2014-M4, Priced on April 11, 2014 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$44,048,000

1.68

0.484

Fixed

E+5

100.00

ASQ2

$396,429,273

2.29

1.272

Fixed

S+17

101.00

X1

$440,477,273

1.75

4.321

WAC IO

Not offered

Not offered

A1

$62,122,000

5.34

2.476

Fixed

Not offered

Not offered

A2

$339,099,000

9.80

3.346

Fixed

S+49

101.00

AB1

$8,472,000

5.34

2.321

Fixed

Not offered

Not offered

AB2

$46,240,039

9.80

3.205

Fixed

S+59

99.00

X2

$455,933,039

8.69

0.296

WAC IO

J+125

2.17

Total

$896,410,312

 

 

 

 

 

Lead Manager:    Goldman, Sachs & Co.
Co-Managers:      Citigroup and Morgan Stanley

1 Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities. 

2 Includes Fannie Mae GeMS sold and excludes sales of CMBS. 

Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"). 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 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.

References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.

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