Fannie Mae Multifamily Kicks Off 2013 with Robust Issuance in the First Quarter
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Andrew Wilson
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202-752-5168
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that the company issued approximately $8.2 billion 1 of multifamily MBS in the first quarter of 2013, backed by new multifamily loans delivered by its lenders. Fannie Mae also resecuritized $3.2 billion of DUS ® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS ™ ) program in the first quarter.
“The momentum in the Agency CMBS market carried over year-end and into 2013, and DUS issuance continued to be robust in the first quarter,” said Kimberly Johnson, Senior Vice President of Multifamily Capital Markets, Fannie Mae. “Resecuritization activity has remained stable in the first quarter despite interest rate volatility, and we are on pace to exceed $10 billion in GeMS issuance this year.”
The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten 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 have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs (ACES ® ) and multifamily Mega securities.
Highlights of Fannie Mae’s multifamily activity in the first quarter of 2013 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the first quarter of 2013 totaled approximately $8.2 billion.
2) FANNIE MAE GeMS & ACES ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.2 billion in the first quarter of 2013. This includes three Fannie Mae GeMS REMIC transactions. In addition, Fannie Mae issued one multifamily REMIC backed by $300 million of dealer-contributed DUS MBS in the first quarter of 2013, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $3.7 billion of multifamily mortgage securities from its portfolio in the first quarter of 2013. 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 Years of Multifamily Mortgage Financing Through Fannie Mae’s DUS Program” on fanniemae.com.
Fannie Mae GeMS Issuance in the First Quarter of 2013
FNA 2013-M4, Priced on March 13, 2013
| CLASS | ORIGINAL FACE | WEIGHTED AVERAGE LIFE | COUPON | COUPON | SPREAD | OFFERED PRICE |
| ASQ1 | $34,700,000 | 2.37 | 1.064 | Fixed Rate | S+16 | 101.00 |
| ASQ2 | $547,662,561 | 4.81 | 1.451 | Fixed Rate | S+24 | 101.00 |
| X1 | $582,362,561 | 4.19 | 4.123 | WAC IO | J+55 | 16.11 |
| ATS1 | $37,800,000 | 4.69 | 1.574 | Fixed Rate | S+35 | 101.20 |
| ATS2 | $284,121,566 | 8.67 | 2.608 | Fixed Rate | S+58 | 101.00 |
| X2 | $321,921,566 | 8.20 | 1.154 | WAC IO | Not Offered | Not Offered |
| Total | $904,284,127 |
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Lead Manager: Credit Suisse
Co-Managers: Barclays and Goldman Sachs
FNA 2013-M3, Priced on February 15, 2013
| CLASS | ORIGINAL FACE | WEIGHTED AVERAGE LIFE | COUPON | COUPON TYPE | SPREAD | OFFERED |
| ASQ1 | $16,000,000 | 1.48 | 0.478 | Fixed Rate | S+10 | 100.00 |
| ASQ2 | $404,057,120 | 2.89 | 1.083 | Fixed Rate | S+17 | 101.00 |
| X1 | $420,057,120 | 2.36 | 4.082 | WAC IO | J+100 | 9.36 |
| A1 | $80,620,000 | 5.34 | 1.585 | Fixed Rate | S+27 | 101.00 |
| A2 | $371,754,436 | 9.63 | 2.509 | Fixed Rate / AFC | S+46 | 100.25 |
| AB1 | $10,994,000 | 5.34 | 1.438 | Fixed Rate | S+37 | 99.75 |
| AB2 | $50,693,424 | 9.63 | 2.501 | Fixed Rate / AFC | S+60 | 99.00 |
| X2 | $514,061,860 | 8.46 | 0.209 | WAC IO | J+165 | 1.36 |
| AL | $186,744,887 | 17.09 | 3.346 | Fixed Rate | S+70 | 99.50 |
| Total | $1,120,863,867 |
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Lead Manager: Bank of America Merrill Lynch
Co-Managers: Citi and J.P. Morgan
FNA 2013-M1, Priced on January 17, 2013
| CLASS | ORIGINAL FACE | WEIGHTED AVERAGE LIFE | COUPON | COUPON | SPREAD | OFFERED |
| ASQ1 | $20,400,000 | 1.76 | 0.492 | Fixed Rate | S+10 | 100.00 |
| ASQ2 | $576,834,779 | 3.60 | 1.074 | Fixed Rate | S+16 | 101.00 |
| X1 | $597,234,779 | 3.54 | 4.568 | WAC IO | Not Offered | Not Offered |
| A1 | $96,369,000 | 5.62 | 1.502 | Fixed Rate | S+25 | 101.00 |
| A2 | $427,888,395 | 9.40 | 2.365 | Fixed Rate | S+43 | 101.00 |
| AB1 | $13,129,000 | 5.62 | 1.367 | Fixed Rate | S+35 | 99.75 |
| AB2 | $58,292,955 | 9.40 | 2.386 | Fixed Rate | S+60 | 99.75 |
| X2 | $595,679,350 | 8.28 | 0.669 | WAC IO | J+160 | 4.74 |
| Total | $1,192,914,129 |
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Lead Manager: Jefferies
Co-Managers: Credit Suisse and Goldman Sachs
1 Reflects 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.
2 Includes Fannie Mae GeMS sold.
Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. 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 Quarterly Report on Form 10-Q and Annual Report on Form 10-K 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.
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