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Press Release

Fannie Mae Prices a $797.2 Million Multifamily DUS REMIC (FNA 2018-M13) Under Its GeMS Program

October 12, 2018

Matthew Classick
202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its ninth Multifamily DUS® REMIC in 2018 totaling $797.2 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on October 10, 2018.

“The M13 was our eighth GeMS offering with tranches backed by Green MBS from our Green Financing business,” said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. “This was our first Green GeMS backed by 12-year, fixed-rate collateral—increasing the diversity of our structured offerings for socially responsible investors and demonstrating the flexibility of the DUS program.”

Fannie Mae’s Multifamily Green Financing Business provides financing through several different green product offerings, encouraging apartment building owners to make energy and water savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has grown the book of business each year, culminating in the issuance of over $27 billion in 2017.

“Fannie Mae is committed to helping reduce the environmental impact of existing multifamily housing stock in the U.S.,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “The 50 Green MBS behind the A1 and A2 tranches in the M13 are from our Green Rewards program; the borrowers of those loans commit to making energy or water efficiency improvements to their buildings, reducing their operating costs, the utility costs for their tenants, and ultimately their apartment’s greenhouse gas emissions.”

All classes of FNA 2018-M13 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 in the table below:

Class Original Face Weighted Average Life Coupon (%) Coupon Type Spread Offered Price
APT $200,683,000 6.90 3.482 WAC S+34 99.11
A1 $64,000,000 8.09 3.819 WAC S+43 100.54
A2 $532,598,608 11.70 3.819 WAC S+63 98.50
Total $797,281,608          

 

Group 1 Collateral

UPB $200,683,000
Collateral 6 Fannie Mae DUS MBS
Geographic Distribution AZ (100.0%)
Weighted Average
Debt Service Coverage Ratio (DSCR)		 1.73x
Weighted Average
Loan-to-Value (LTV)		 65.4%

 

Group 2 Collateral

UPB $596,598,608
Collateral 50 Fannie Mae DUS MBS
Geographic Distribution TX (23.2%), GA (14.3%), IN (12.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR)		 1.35x
Weighted Average
Loan-to-Value (LTV)		 71.2%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2018-M13) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.

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. Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/FannieMae.