Fannie Mae Issues $10.4 Billion of Multifamily MBS in the First Quarter of 2015
WASHINGTON, D.C. – May 5, 2015 – (RealEstateRama) — Fannie Mae (FNMA/OTC) announced today that the company issued $10.4 billion1 of multifamily MBS in the first quarter of 2015, primarily through its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae also resecuritized $3.4 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the first quarter of the year.
“We saw more than $15 billion in MBS and structured securities backed by DUS MBS in the first quarter of 2015,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. “The DUS MBS execution gives borrowers, lenders and investors more options and better pricing transparency than other multifamily financing executions and effectively distributes risk. Underwriting standards remained consistent and investor demand was strong – spreads tightened throughout the quarter.”
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 first quarter of 2015 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the first quarter of 2015 totaled $10.4 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.4 billion in the first quarter of 2015. This issuance volume was generated from three Fannie Mae GeMS REMIC transactions. In addition, Fannie Mae issued $2.3 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the first quarter of 2015, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold $4.4 billion of Fannie Mae multifamily mortgage securities from its portfolio in the first quarter of 2015.2
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 First Quarter of 2015
FNA 2015-M4, Priced on March 12, 2015
|
CLASS |
ORIGINAL FACE |
WEIGHTED AVERAGE LIFE |
COUPON (%) |
COUPON TYPE |
SPREAD |
OFFERED PRICE |
|
FA |
$393,055,092 |
3.34 |
0.385 |
Floater/ WAC Cap |
1mL+21 |
100.00 |
|
SA |
$393,055,092 |
2.37 |
5.187 |
Inverse IO |
Not Offered |
Not Offered |
|
AV1 |
$43,618,683 |
3.76 |
2.013 |
Fixed |
S+22 |
101.00 |
|
AV2 |
$542,473,854 |
6.84 |
2.509 |
Fixed/AFC |
S+38 |
101.00 |
|
ABV1 |
$5,948,002 |
3.76 |
1.761 |
Fixed |
S+32 |
99.75 |
|
ABV2 |
$73,973,708 |
6.84 |
2.369 |
Fixed/AFC |
S+44 |
99.75 |
|
X2 |
$666,014,247 |
6.18 |
0.679 |
WAC IO |
Not Offered |
Not Offered |
|
TOTAL |
$1,059,069,339 |
|
|
|
|
|
Lead Manager: Morgan Stanley
Co-Managers: Citigroup, BofA Merrill Lynch, and Mischler Financial Group
FNA 2015-M3, Priced on February 12, 2015
|
CLASS |
ORIGINAL FACE |
WEIGHTED AVERAGE LIFE |
COUPON (%) |
COUPON TYPE |
SPREAD |
OFFERED PRICE |
|
FA |
$315,891,089 |
3.10 |
0.392 |
Floater/ WAC Cap |
1mL+22 |
100.00 |
|
SA |
$315,891,089 |
2.14 |
4.777 |
Inverse IO |
Not Offered |
Not Offered |
|
A1 |
$98,113,000 |
5.44 |
2.301 |
Fixed |
S+36 |
101.00 |
|
A2 |
$639,223,000 |
9.66 |
2.723 |
Fixed |
S+50 |
101.00 |
|
AB1 |
$13,380,000 |
5.44 |
2.141 |
Fixed |
S+45 |
99.75 |
|
AB2 |
$87,166,295 |
9.66 |
2.625 |
Fixed |
S+55 |
99.75 |
|
X2 |
$837,882,295 |
8.66 |
0.388 |
WAC IO |
Not Offered |
Not Offered |
|
TOTAL |
$1,153,773,384 |
|
|
|
|
|
Lead Manager: Goldman Sachs & Co.
Co-Managers: Deutsche Bank and Wells Fargo
FNA 2015-M1, Priced on January 14, 2015
|
CLASS |
ORIGINAL FACE |
WEIGHTED AVERAGE LIFE |
COUPON (%) |
COUPON TYPE |
SPREAD |
OFFERED PRICE |
|
ASQ1 |
$60,000,000 |
2.03 |
0.782 |
Fixed |
E+5 |
100.00 |
|
ASQ2 |
$309,201,864 |
2.94 |
1.626 |
Fixed |
S+26 |
101.00 |
|
X1 |
$369,201,864 |
2.79 |
3.833 |
WAC IO |
Not Offered |
Not Offered |
|
A1 |
$99,809,000 |
5.66 |
2.177 |
Fixed |
S+46 |
101.00 |
|
A2 |
$649,702,289 |
9.61 |
2.532 |
Fixed/AFC |
S+52 |
101.00 |
|
AB1 |
$13,610,000 |
5.66 |
2.038 |
Fixed |
S+56 |
99.75 |
|
AB2 |
$88,596,085 |
9.61 |
2.465 |
Fixed/AFC |
S+60 |
99.75 |
|
X2 |
$851,717,374 |
9.09 |
0.444 |
WAC IO |
Not Offered |
Not Offered |
|
TOTAL |
$1,220,919,238 |
|
|
|
|
|
Lead Manager: Bank of America Merrill Lynch
Co-Managers: Citigroup and Goldman Sachs & Co.
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.
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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