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Press Release

Fannie Mae Prices $904.5 Million Multifamily DUS REMIC (FNA 2018-M2) Under Its GeMS Program

February 8, 2018

Matthew Classick
202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTC) priced its second Multifamily DUS® REMIC in 2018 totaling $904.5 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on February 7, 2018.

“The ability of our GeMS program to place $900 million of long duration paper in a week marked by significant market volatility is a testament to the stable cash flows and strong credit performance of the DUS MBS collateral behind the M2,” said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. “In addition, the M2 transaction builds upon Fannie Mae’s Green Financing Business, which has issued over $30 billion in DUS Green MBS and $3.4 billion in Green GeMS tranches. The M2 marks the second GeMS deal that is entirely backed by Green MBS.”

All classes of FNA 2018-M2 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
A1 $108,540,000 5.73 2.803 WAC S+30 98.73
A2 $795,954,209 9.73 2.903 WAC S+45 97.04
X $108,540,000 6.66 0.100 FIX IO Not Offered Not Offered
Total $904,494,209          

 

Group 1 Collateral

UPB $904,494,209
Collateral 50 Fannie Mae DUS MBS
Geographic Distribution CA (18.4%), FL (14.2%), PA (11.5%)
Weighted Average
Debt Service Coverage Ratio (DSCR)		 1.52x
Weighted Average
Loan-to-Value (LTV)		 70.1%

 

Settlement Date February 27. 2018
Lead Manager BofA Merrill Lynch
Co-Managers KGS-Alpha Capital Markets, L.P.
Nomura
Multi-Bank Securities, Inc

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2018-M2) 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.