Federal National Mortgage Assctn Fnni Me : News Release - Fannie Mae Prices $926.6 Million Multifamily ...
February 18, 2016 at 01:48 pm EST
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February 18, 2016
Fannie Mae Prices $926.6 Million Multifamily DUS REMIC (FNA 2016-M2) Under Its GeMS Program
Pete Bakel
202-752-2034
WASHINGTON, D.C. - Fannie Mae (FNMA/OTC) priced its second Multifamily DUS REMIC in 2016 totaling $926.6 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on February 9, 2016.
'One of the strengths of the DUS program is the ability to offer borrowers more flexible terms than other securitized lending platforms,' said Josh Seiff Fannie Mae's Vice President of Capital Markets and Trading. 'This deal included our ARM 7-6 (i.e., 7-year loan with 6% lifetime interest rate cap) floating rate MBS and a group of seasoned, fixed-rate MBS with about 20 years remaining to maturity. All of the tranches were oversubscribed in a quick-moving syndicate process despite general market volatility at the time. This execution demonstrated the value of Fannie Mae's flexible execution in bridging the divide between borrower needs and investor demand.'
All classes of FNA 2016-M2 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 in the table below:
Class
Original Face
Weighted Average Life
Coupon (%)
Coupon Type
Spread
Offered
Price
FA
$183,863,467
6.52
1.276
Floater/AFC
S+85
99.91
FX
$183,863,467
0.86
0.326
WAC IO
Not Offered
Not Offered
AV1
$45,639,000
3.38
1.470
Fixed
S+53
100.00
AV2
$419,454,000
6.60
2.152
Fixed
S+83
100.00
ABV1
$6,224,000
3.38
1.443
Fixed
Not Offered
Not Offered
ABV2
$57,198,178
6.60
2.131
Fixed
S+85
99.75
X2
$528,515,178
5.84
1.027
WAC IO
Not Offered
Not Offered
AL
$214,196,385
12.18
3.471
Fixed
S+150
102.00
X3
$214,196,385
4.39
1.944
WAC IO
Not Offered
Not Offered
Total
$926,575,030
Group 1 Collateral
UPB
$183,863,467
Collateral
26 Fannie Mae DUS MBS
Geographic Distribution
FL (16.8%), IN (12.4%), TX (11.8%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
2.36x
Weighted Average
Loan-to-Value (LTV)
70.2%
Group 2 Collateral
UPB
$528,515,178
Collateral
68 Fannie Mae DUS MBS
Geographic Distribution
MD (24.9%), NY (15.9%), TX (12.5%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.61x
Weighted Average
Loan-to-Value (LTV)
63.5%
Group 3 Collateral
UPB
$214,196,385
Collateral
86 Fannie Mae DUS MBS
Geographic Distribution
CA (45.4%), NY (12.0%), PA (10.4%)
Weighted Average
Debt Service Coverage Ratio (DSCR)
1.85x
Weighted Average
Loan-to-Value (LTV)
56.3%
Settlement Date
February 29, 2016
Lead Manager
Credit Suisse
Co-Managers
Bank of America Merrill Lynch Securities Inc
KGS-Alpha Capital Markets
Multi-Bank Securities Inc
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M2) available on the Fannie Mae GeMS Archive page on 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 Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.
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Fannie Mae - Federal National Mortgage Association issued this content on 18 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 February 2016 18:47:18 UTC
Original Document: http://www.fanniemae.com/portal/about-us/media/financial-news/2016/6351.html
Federal National Mortgage Association is engaged in providing a source of financing for residential mortgages in the United States. The Company is a government-sponsored, stockholder-owned corporation, chartered by Congress to provide liquidity and stability to the United States housing market. Its segments include Single-Family and Multifamily. The Single-Family business operates in the secondary mortgage market relating to loans secured by properties containing four or fewer residential dwelling units. The Multifamily business operates in the secondary mortgage market relating to loans secured by properties containing five or more residential units. It engages in three categories of mortgage securitization transactions: lender swap transactions, portfolio securitization transactions, and structured securitization transactions. It funds its business through the issuance of short-term and long-term debt securities in the domestic and international capital markets.