Fannie Mae Priced $640 Million Social Multifamily DUS REMIC (FNA 2021-M2S) Under Its GeMS Program

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) priced a $640 million Social Multifamily DUS® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on November 18, 2021. FNA 2021-M2S marks the twelfth Fannie Mae GeMS issuance of 2021.

“With the M2S, we are wrapping up our GeMS issuance for the year with our second Social GeMS deal,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “As we head into the holiday this week, we are thankful for our investor community who, despite a crowded quarter of competing issuances and increased pressure on spreads, was able to come out in support of the over 4,200 units of restricted affordable housing and 2,000 affordable manufactured housing community pads backing this deal. We remain committed to supporting affordable and workforce housing across the country, as well as providing capital market stakeholders with similar high credit quality structures and clear, timely disclosures.”

The M2S issuance aligns with Fannie Mae’s Sustainable Bond Framework, which governs Fannie Mae’s commitment to adhering to international standards in its issuance of green, social, and sustainable bonds. In 2020, Fannie Mae received a second party opinion on its Sustainable Bond Framework from independent third-party Sustainalytics. The framework builds on Fannie Mae’s 32-year history of supporting multifamily affordable housing, 10-year history of multifamily green financing, and its expansion into single-family green MBS issuance in 2020.

“In addition to the GeMS structured execution like the M2S, Fannie Mae also offers individual multifamily Social MBS through its DUS program,” said Lisa Bozzelli, Senior Director, Multifamily Capital Markets. “Currently, the Social MBS are backed by affordable housing properties with an income or rent restriction regulatory agreement or a manufactured housing community property. As the book of tradable Social DUS MBS surpasses the $9 billion mark, we are excited to provide a diverse group of investment opportunities for those GeMS investors who value both a socially responsible investment opportunity and appreciate the high quality of DUS collateral.”

All classes of FNA 2021-M2S 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 can be found in the table below:

Group 1 Collateral

Group 2 Collateral

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M2S) available on the Fannie Mae GeMS Archive page.