WASHINGTON, June 20, 2011 /PRNewswire/ --
Fannie Mae (OTC Bulletin Board: FNMA) priced its second Multifamily DUS REMIC in 2011 totaling $594 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on Friday, June 17, 2011.
All classes of this security, FNA 2011-M2, 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 includes four fixed-rate sequential pay classes, a floating rate class, an inverse IO class and a WAC/IO class.
FNA 2011-M2 employs a structure not previously used in a Fannie Mae GeMS™ transaction. For the fixed rate classes, all unscheduled principal payments and associated prepayment premiums will be distributed first to the AB class, thus enhancing the cash flow stability of the A1, A2 and A3 classes.
The structure details for the multi-tranche offering are included in the table below.
Weighted Average Coupon Class CUSIP Original Face Life Coupon Type Spread Price Fixed A1 31397U3L1 $41,197,000 3.89 2.070% Rate S+47 100.5 Fixed A2 31397U3M9 $41,795,000 8.99 3.710% Rate S+65 100.5 Fixed A3 31397U3N7 $342,229,854 9.77 3.740% Rate S+66 100.375 Fixed AB 31397U3K3 $57,984,798 9.13 3.730% Rate S+78 99.75 1mo L+45, Floating FA 31397U3P2 $110,559,670 9.12 7% Cap Rate L+45 100.0 Inverse Interest Not Not SA 31397U3Q0 $110,559,670 9.12 6.361% Only Offered Offered Interest Not Not X 31397U3R8 $593,766,322 9.12 0.126% Only Offered Offered Total $593,766,322
Collateral: 88 DUS Pools Geographic Distribution: CA (24.28%), AZ (9.99%), NY (8.99%) Weighted Average Debt Service Coverage Ratio (DSCR): 2.02x Weighted Average Loan-to-Value (LTV): 63.84% Settlement Date: 6/30/2011 Lead Manager: Amherst Securities Group LP Co-Managers: Bank of America Merrill Lynch
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.
SOURCE Fannie Mae