Fannie Mae Prices $501 Million Multifamily DUS REMIC Under Its GeMS™ Program

WASHINGTON, July 18, 2011 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its third Multifamily DUS REMIC in 2011 totaling $501 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on Thursday, July 14, 2011.

The deal structure for this Multifamily DUS REMIC incorporates the built-in flexibility characteristics of combinable and recombinable (RCR) classes. All classes of this security, FNA 2011-M4, 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   Weighted           Coupon   Spread  Price
                       Face     Average   Coupon    Type
                                  Life
                                                   Fixed
      A1  3136A0FJ1  51,698,937   5.36    2.548%    Rate     S+50   100.50
                                                   Fixed
      A2  3136A0FK8 289,884,241   9.83    3.726%    Rate     S+70   100.00
                                                   Fixed
      AB  3136A0FH5  46,019,809   9.15    3.682%    Rate     S+80    99.75
                                                  Floating
      FE  3136A0FL6  16,927,167   5.37   1mo L+60,  Rate     L+60   100.00
                                         6.5% Cap
                                                  Floating
      FN  3136A0FN2  96,902,122   9.83   1mo L+80,  Rate     L+80   100.00
                                         6.5% Cap
                                                   Inverse
                                                  Interest   Not      Not
      SE  3136A0FM4  16,927,167   5.36   5.714%     Only   Offered  Offered
                                                   Inverse
                                                  Interest   Not      Not
      SN  3136A0FP7  96,902,122   9.33   5.514%     Only   Offered  Offered
                                                   Interest   Not      Not
       X  3136A0FQ5 501,432,276   8.73   0.266%     Only   Offered  Offered
    Total           501,432,276
   
   
   
   
    Collateral:                         84 Fannie Mae DUS MBS
    Geographic Distribution:            CA (19.09%), NV (14.99%), FL (12.33%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR): 1.69x
    Weighted Average
    Loan-to-Value (LTV):                63.04%
    Settlement Date:                    7/29/2011     Lead Manager:                       Bank of America Merrill Lynch
    Co-Managers:                        Amherst Securities Group LP
                                        Morgan Stanley

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet ( FNA 2011-M4) 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 www.fanniemae.com and on the SEC's Web site at 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.

SOURCE Fannie Mae