Fannie Mae Multifamily Issuance Tops $10 Billion in Fourth Quarter

Andrew Wilson

202-752-5168

WASHINGTON, DC – Fannie Mae (FNMA/OTC) issued approximately $10.8 billion¹ of multifamily MBS in the fourth quarter of 2012, backed by new multifamily loans delivered by its lenders. Total issuance for 2012 was $33.1 billion, which was up from $23.8 billion in 2011. Fannie Mae also resecuritized $2.2 billion of DUS^® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS^TM) program in the fourth quarter, bringing the total GeMS issuance for 2012 to $10 billion.

“Market activity for our securities was robust in 2012 with total issuance topping $33 billion,” said Kimberly Johnson, Senior Vice President of Multifamily Capital Markets, Fannie Mae. “Issuance was particularly strong in the fourth quarter, in part due to the Fed’s aggressive bond-buying program, which has helped to keep borrowing costs at record lows. Private-sector lending has shown signs of growth as well, adding liquidity for all market participants.”

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 fourth quarter of 2012 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the fourth quarter of 2012 totaled approximately $10.8 billion.

2) FANNIE MAE GeMS & ACES ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.2 billion in the fourth quarter of 2012. This includes two Fannie Mae GeMS REMIC transactions. In addition, dealers issued three multifamily REMICs backed by $1.1 billion of DUS MBS in the fourth quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS. The combined Fannie Mae GeMS and ACES issuance backed by DUS MBS was $13.9 billion in 2012.

3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $1.9 billion of multifamily mortgage securities from its portfolio in the fourth quarter of 2012.²

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 Fourth Quarter of 2012

FNA 2012-M17, Priced on November 9, 2012

Lead Manager: Citigroup
Co-Managers: Amherst Securities Group and Barclays Capital

FNA 2012-M14, Priced on October 11, 2012

Lead Manager: Bank of America Merrill Lynch
Co-Managers: Jefferies and Morgan Stanley

¹ Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period.The number excludes Fannie Mae portfolio resecuritization transactionsand 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.

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