Fannie Mae Prices $577 Million Multifamily DUS REMIC Under Its GeMS™ Program

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Fannie Mae

14 Oct, 2011, 20:53 GMT

WASHINGTON, October 14, 2011 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its sixth Multifamily DUS REMIC in 2011 totaling $577 million under its Fannie Mae Guaranteed Multifamily Structured (Fannie Mae GeMS™) program on October 13, 2011.  

"The Agency CMBS market has been resilient through a tough period of global economic uncertainty and heightened market volatility.  Fannie Mae has issued four GeMS deals since July, and they have all been very well received. This 7-year transaction took advantage of demand in the belly of the curve, and the execution was even better than expected," said Kimberly Johnson, Vice President Multifamily Capital Markets.

All classes of FNA 2011-M7, are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.  Yield maintenance prepayment premiums apply to all underlying loans.  The structure details for the multi-tranche offering are included in the table below.

 
    Class   CUSIP   Original Face Weighted Coupon  Coupon  Pricing Offered
                                  Average           Type   Spread   Price
                                    Life

     A1   3136A1F67  $90,000,000    4.95   2.049%  Fixed     +55    100.5
                                                    Rate
     A2   3136A1F75 $418,140,000    6.60   2.578%  Fixed     +70    100.5
                                                    Rate
     AB   3136A1F83  $69,281,000    6.31   2.508%  Fixed     +82    99.75
                                                    Rate
      X   3136A1F91 $577,421,000    6.31   1.331% Interest   Not     Not
                                                    Only   offered offered
    Total           $577,421,000
 

    Collateral:                         104 Fannie Mae DUS MBS
    Geographic Distribution:            CA (25.60%), VA (8.94%), CO (7.65%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR): 1.50x
    Weighted Average
    Loan-to-Value (LTV):                65.65%
    Settlement Date:                    10/28/2011
 
    Lead Manager:                       Credit Suisse
    Co-Manager:                         Citigroup

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M7) available on Fannie Mae's Basics of Multifamily MBS site at http://www.fanniemae.com.

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 Investors page of our Web site at http://www.fanniemae.com and on the SEC's Web site at http://www.sec.gov.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.