Fannie Mae Prices $594 million Multifamily DUS REMIC under its GeMS Program

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News Release

June 20, 2011

Fannie Mae Prices $594 million Multifamily DUS REMIC under its GeMS Program

Katherine Constantinou

202-752-5403

WASHINGTON, D.C. — Fannie Mae (FNMA/OTC) priced its second Multifamily DUS REMIC in 2011 totaling $594 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on Friday, June 17, 2011.

All classes of this security, FNA 2011-M2, are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. Yield maintenance prepayment premiums apply to all underlying loans. The structure includes four fixed-rate sequential pay classes, a floating rate class, an inverse IO class and a WAC/IO class.

FNA 2011-M2 employs a structure not previously used in a Fannie Mae GeMSTM transaction. For the fixed rate classes, all unscheduled principal payments and associated prepayment premiums will be distributed first to the AB class, thus enhancing the cash flow stability of the A1, A2 and A3 classes.

The structure details for the multi-tranche offering are included in the table below.

ClassCUSIPOriginal FaceWeighted Average LifeCouponCoupon TypeSpreadPrice
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          


Collateral: 88 DUS Pools

Geographic Distribution: CA (24.28%), AZ (9.99%), NY (8.99%)

Weighted Average

Debt Service Coverage Ratio (DSCR): 2.02x

Weighted Average

Loan-to-Value (LTV): 63.84%

Settlement Date: 6/30/2011

Lead Manager: Amherst Securities Group LP

Co-Managers: Bank of America Merrill Lynch

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M2) available on Fannie Mae's Multifamily MBS at 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 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.