Fannie Mae Supports the Multifamily Market with Consistent Issuance in the Third Quarter of 2012

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News Release

October 09, 2012

Fannie Mae Supports the Multifamily Market with Consistent Issuance in the Third Quarter of 2012

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) today announced that the company issued approximately $8.5 billion1 of multifamily MBS in the third quarter of 2012, backed by new multifamily loans delivered by our lenders.  Year-to-date issuance is $22.3 billion.  Fannie Mae also resecuritized $4.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the third quarter.

“A protracted, low interest rate environment has kept the borrowing rate below 4 percent, and consequently, originations have been robust,” said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.

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 (ACES) and multifamily Mega securities.

Highlights of Fannie Mae’s multifamily activity in the third quarter of 2012 include the following:

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the third quarter of 2012 totaled approximately $8.5 billion.    

2)  FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $4.0 billion in the third quarter of 2012.  This includes four Fannie Mae GeMS REMIC transactions.  In addition, dealers issued two multifamily REMICs backed by $1.2 billion of DUS MBS in the third quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.

3)  FANNIE MAE SALES

Fannie Mae Capital Markets sold approximately $4.9 billion of multifamily mortgage securities from its portfolio in the third quarter of 2012.2

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

Fannie Mae GeMS Issuance in the Third Quarter of 2012

FNA 2012-M13, Priced on September 19, 2012 

Class

CUSIP

Original FACE

Weighted Average Life (Years)

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

3136A8G20

$25,000,000

2.44

1.012

Fixed Rate

S+15

101

ASQ2

3136A8G38

$593,152,202

4.70

1.246

Fixed Rate

S+22

101

X1

3136A8G46

$618,152,202

4.13

4.184

Interest Only

Not Offered

Not Offered

A1

3136A8G53

$72,200,000

5.53

1.403

Fixed Rate

S+25

101

A2

3136A8G61

$368,870,450

9.66

2.377

Fixed Rate

S+50

101

AB1

3136A8G79

$9,800,000

5.54

1.268

Fixed Rate

S+35

99.75

AB2

3136A8G87

$49,916,275

9.66

2.332

Fixed Rate

S+60

99.75

X2

3136A8G95

$500,786,725

8.56

0.790

Interest Only

Not Offered

Not Offered

Total

 

$1,118,938,927

 

 

 

 

 

Lead Manager:  RBS

Co-Managers:  Bank of America Merrill Lynch and Jeffries

 

FNA 2012-M11, Priced on September 10, 2012 

Class

CUSIP

Original FACE

Weighted Average Life (Years)

Coupon

(%)

Coupon Type

Spread

Offered

Price

FA

3136A77E6

$699,627,969

5.97

1mL + 50

Floating Rate

50 DM

99.951

FX

3136A77F3

$699,627,969

5.97

Not Offered

Interest Only

Not Offered

Not Offered

Total

 

$699,627,969

 

 

 

 

 

Lead Manager and Sole Bookrunner:  Morgan Stanley

 

FNA 2012-M9, Priced on August 9, 2012 

Class

CUSIP

Original FACE

Weighted Average Life (Years)

Coupon

(%)

Coupon Type

Spread

Offered

Price

ASQ1

3136A7J78

$75,000,000

3.96

0.978

Fixed Rate

S+23

100

ASQ2

3136A7L26

$567,530,081

5.24

1.513

Fixed Rate

S+30

101

X1

3136A72B7

$642,530,081

4.62

4.297

Interest Only

Not Offered

Not Offered

A1

3136A72C5

$118,855,000

5.28

1.553

Fixed Rate

S+33

101

A2

3136A72D3

$574,627,235

9.53

2.482

Fixed Rate

S+60

101

AB1

3136A72E1

$16,207,000

5.28

1.372

Fixed Rate

S+40

99.75

AB2

3136A72F8

$78,358,760

9.53

2.434

Fixed Rate

S+70

99.75

X2

3136A72G6

$788,047,995

8.39

0.0897

Interest Only

Not Offered

Not Offered

Total

 

$1,430,578,076

 

 

 

 

 

Lead Manager:  J.P. Morgan

Co-Managers:  Bank of America Merrill Lynch and RBS

 

FNA 2012-M8, Priced on July 12, 2012 

Class

CUSIP

Original FACE

Weighted Average Life (Years)

Coupon

(%)

Coupon Type

Spread

Offered

Price

ASQ1

3136A7LP5

$68,000,000

3.41

1.166

Fixed Rate

S+25

101

ASQ2

3136A7MJ8

$186,507,000

5.40

1.520

Fixed Rate

S+40

101

ASQ3

3136A7MK5

$235,899,128

6.58

1.801

Fixed Rate

S+50

101

X1

3136A7ML3

$490,406,128

5.23

Not Offered

Interest Only

Not Offered

Not Offered

A1

3136A7MM1

$48,800,000

5.37

1.539

Fixed Rate

S+42

101

A2

3136A7MN9

$213,765,920

9.75

2.349

Fixed Rate

S+65

101

AB1

3136A7MP4

$6,647,591

5.37

1.362

Fixed Rate

S+49

99.75

AB2

3136A7MQ2

$29,154,963

9.75

2.305

Fixed Rate

S+75

99.75

X2

3136A7MR0

$298,368,474

8.53

Not Offered

Interest Only

Not Offered

Not Offered

Total

 

$788,774,602

 

 

 

 

 

Lead Manager:  Citigroup

Co-Managers:  Amherst and RBS

 

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.

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.

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.