Fannie Mae Prices $1.05 Billion Multifamily DUS REMIC (FNA 2014-M3) Under Its Fannie Mae GeMS Program

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News Release

March 12, 2014

Fannie Mae Prices $1.05 Billion Multifamily DUS REMIC (FNA 2014-M3) Under Its Fannie Mae GeMS Program

Katherine Constantinou

202-752-5403

WASHINGTON, D.C. – Fannie Mae (FNMA/OTC) priced its third Multifamily DUS® REMIC in 2014 totaling $1.05 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on March 7, 2014.

"Spreads have been grinding tighter in Agency CMBS, but investor participation remains strong," said Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets. "The investor community can see where DUS MBS (which are used as collateral for our GeMS deals) trade on any given day. This transparency confirms that the diversification, stable cash flows and prepayment protection offered by Fannie Mae GeMS structures are an excellent value on a relative basis. That kind of transparency is hard to find in CRE – or in most other structured products."

All classes of FNA 2014-M3 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 are included in the table below: 

Class

Original Face

Weighted Average Life

Coupon (%)

Coupon Type

Spread

Offered

Price

ASQ1

$50,000,000

1.41

0.418

Fixed

E+5

100.00

ASQ2

$319,650,401

1.69

0.558

Fixed

E+12

100.00

X1

$369,650,401

1.16

4.734

WAC IO

Not offered

Not offered

A1

$91,119,022

5.69

2.613

Fixed

Not offered

Not offered

A2

$508,799,473

9.78

3.501

Fixed

S+50

101.00

AB1

$12,425,322

5.69

2.442

Fixed

Not offered

Not offered

AB2

$69,381,746

9.78

3.462

Fixed

S+63

99.75

X2

$681,725,563

8.73

0.233

WAC IO

Not offered

Not offered

Total

$1,051,375,964

 

 

 

 

 

Group 1 Collateral

UPB:                                                                     $382,679,006
Collateral:                                                           67 Fannie Mae DUS MBS
Geographic Distribution:                                CA (27.0%), FL (10.9%), AZ (8.3%)
Weighted Average
Debt Service Coverage Ratio (DSCR):         1.59x
Weighted Average
Loan-to-Value (LTV):                                        67.8%

Group 2 Collateral

UPB:                                                                      $683,797,942
Collateral:                                                            77 Fannie Mae DUS MBS
Geographic Distribution:                                  TX (16.5%), CA (14.7%), GA (11.4%)
Weighted Average
Debt Service Coverage Ratio (DSCR):          1.38x
Weighted Average
Loan-to-Value (LTV):                                         71.3%

Settlement Date:                                                March 31, 2014

Lead Manager:                                                   Deutsche Bank
Co-Managers:                                                     Barclays and Jefferies

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M3) available on the Fannie Mae GeMS Archive page on 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 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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