Fannie Mae Prices $767 Million Multifamily DUS REMIC Under its Fannie Mae GeMS™ Program

WASHINGTON, March 16, 2012 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its third Multifamily DUS REMIC in 2012 totaling $767 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on March 14, 2012.

"In the weeks leading up to the launch of 2012-M3, we received numerous inquiries about seven-year paper.  We continue to see heightened demand in 7s and 10s as rates sell off and the yield curve steepens.  Agency CMBS remains well-bid in the secondary market as well," said Kimberly Johnson, Vice President of Multifamily Capital Markets.   FNA 2012-M3 marks the first time the Fannie Mae GeMS program has employed a grouped collateral structure, offering separate tranches backed by seven-year and ten-year collateral.

All classes of FNA 2012-M3 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 included in the table below.

                                                   
    Class   Original Face  Weighted  Coupon  Coupon        Spread    Offered 
                           Average           Type                    Price
                           Life           
    1A1     $70,282,951    5.56      2.098   Fixed Rate      S+40     101.00
    1A2    $342,043,694    9.77      3.044   Fixed Rate      S+63     101.00
    1AB     $56,226,361    9.05      2.911   Fixed Rate      S+73      99.88
    X1     $468,553,006    9.05      0.470   Interest Only  T+250       2.55
    2A1     $46,481,734    4.94      1.934   Fixed Rate      S+38     101.00
    2A2    $216,168,254    6.67      2.444   Fixed Rate      S+51     101.00
    2AB     $35,815,908    6.36      2.292   Fixed Rate      S+61      99.88
    X2     $298,465,896    6.36      0.726   Interest Only  T+240       3.39
    Total  $767,018,902
    Group 1 Collateral
    UPB:                                  $468,553,006
    Collateral:                           83 Fannie Mae 10/9.5 DUS MBS
    Geographic Distribution:              CA (13%), NY (10%), TX (10%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR):   1.77x
    Weighted Average
    Loan-to-Value (LTV):                  65.7%
    Group 2 Collateral
    UPB:                                  $298,465,896
    Collateral:                           44 Fannie Mae 7/6.5 DUS MBS
    Geographic Distribution:              CA (23%), VA (13%), FL (13%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR):   1.48x
    Weighted Average
    Loan-to-Value (LTV):                  69.0%
    Lead Manager:                         Morgan Stanley
    Co-Managers:                          Citigroup and J.P. Morgan
    Settlement Date:                      March 30, 2012
 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2012-M3) available on Fannie Mae's GeMS Archives page 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.