WASHINGTON, Oct. 20, 2016 /PRNewswire/ -- Fannie Mae (OTC
Bulletin Board: FNMA) announced today that the company issued $17.9 billion1 of
multifamily MBS in the third quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®)
program. Fannie Mae also resecuritized $2.1 billion of DUS MBS through its Guaranteed Multifamily
Structures (Fannie Mae GeMS™) program.
"Hats off to the Fannie Mae Multifamily Lenders for a fantastic third quarter," said Josh
Seiff, Vice President of Multifamily Capital Markets and Trading, Fannie Mae. "When I look at our third quarter
production, the numbers that are most impressive are 2.1 times actual DSCR (debt service coverage ratio) and 69 percent LTV
(loan-to-value) ratio. Maintaining that level of credit quality while issuing nearly $18 billion in
MBS to end investors is outstanding. It is a reflection of the strong credit culture created by a long standing risk-sharing
partnership between Fannie Mae and the DUS lender community."
The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined
maturities ranging from five to 30 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 include consistent monthly issuance,
block size transactions, collateral diversity, and pricing close to par.
Highlights of Fannie Mae's multifamily activity in the third quarter of 2016 include the following:
1)
|
MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the third quarter of 2016 totaled $17.9 billion.
|
|
|
2)
|
FANNIE MAE GeMS ISSUANCE/STRUCTURED SECURITIES
Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae
Capital Markets totaled $2.1 billion in the third quarter of 2016. This issuance volume included two Fannie Mae GeMS
REMIC transactions. In addition, Fannie Mae issued $2.1 billion in Non-GeMS REMICs and Megas backed by DUS MBS collateral
from the broker-dealer community in the third quarter of 2016, adding to the liquidity of Fannie Mae DUS
MBS.
|
|
|
3)
|
FANNIE MAE SALES
Fannie Mae Capital Markets sold $3.7 billion of Fannie Mae multifamily mortgage securities from its portfolio
in the third quarter of 2016.2
|
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-Five Years of
Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.
Fannie Mae GeMS Issuance in the Third Quarter of 2016
FNA 2016-M9, Priced on September 8, 2016
Class
|
Original Face
|
Weighted
Average
Life
|
Coupon
(%)
|
Coupon Type
|
Spread
|
Offered
Price
|
FA
|
$579,564,135
|
6.44
|
1.108
|
Floater/AFC
|
L+59
|
100.00
|
FX
|
$579,564,135
|
0.81
|
0.495
|
WAC IO
|
Not Offered
|
Not Offered
|
A1
|
$60,591,000
|
5.77
|
2.003
|
Fixed
|
S+56
|
101.00
|
A2
|
$444,364,282
|
9.62
|
2.292
|
Fixed
|
S+73
|
101.00
|
AB1
|
$8,263,000
|
5.77
|
1.800
|
Fixed
|
Not Available
|
Not Available
|
AB2
|
$60,595,000
|
9.62
|
2.217
|
Fixed
|
Not Offered
|
Not Offered
|
X2
|
$573,813,282
|
8.72
|
0.450
|
WAC IO
|
Not Offered
|
Not Offered
|
Total
|
$1,153,377,417
|
|
|
|
|
|
Lead Manager: Morgan Stanley
Co-Managers: Citigroup, KGS-Alpha Capital Markets, and Multi-Bank Securities
FNA 2016-M7, Priced on July 12, 2016
Class
|
Original Face
|
Weighted
Average
Life
|
Coupon
(%)
|
Coupon Type
|
Spread
|
Offered
Price
|
FA
|
$190,212,689
|
6.17
|
1.118
|
Floater/AFC
|
L+67
|
99.93
|
FX
|
$190,212,689
|
0.56
|
0.772
|
WAC IO
|
Not Offered
|
Not Offered
|
AV1
|
$18,294,000
|
3.38
|
1.557
|
Fixed
|
S+43
|
100.50
|
AV2
|
$244,482,292
|
6.75
|
2.157
|
Fixed
|
S+64
|
102.00
|
X2
|
$262,776,292
|
6.06
|
1.831
|
WAC IO
|
Not Offered
|
Not Offered
|
A1
|
$44,097,000
|
5.92
|
2.037
|
Fixed
|
S+71
|
101.00
|
A2
|
$361,271,000
|
9.77
|
2.499
|
Fixed
|
S+100
|
101.00
|
AB1
|
$6,015,000
|
5.92
|
1.860
|
Fixed
|
S+76
|
99.75
|
AB2
|
$49,262,618
|
9.77
|
2.385
|
Fixed
|
S+103
|
99.75
|
X3
|
$460,645,618
|
6.62
|
0.851
|
WAC IO
|
Not Offered
|
Not Offered
|
Total
|
$913,634,599
|
|
|
|
|
|
Lead Manager: Goldman, Sachs & Co.
Co-Managers: Jefferies, KGS-Alpha Capital Markets, and Drexel
Hamilton
1Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes
Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS
securities to MBS securities.
2Includes Fannie Mae GeMS sold and excludes sales of CMBS, MRB, ASAP purchases, and DMBS.
This release may contain forward-looking statements. 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 Annual Report on Form 10-K and Quarterly
Report on Form 10-Q 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.
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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fannie-mae-issues-179-billion-of-multifamily-mbs-in-the-third-quarter-of-2016-300348610.html
SOURCE Fannie Mae