Fannie Mae Prices $719 Million Multifamily DUS REMIC Under Its GeMS™ Program

News provided by

Fannie Mae

09 Nov, 2011, 20:34 GMT

WASHINGTON, November 9, 2011 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its seventh Multifamily DUS REMIC in 2011 totaling $719 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on November 8, 2011.

"The deal cleared quickly and priced well. Demand for securities with high credit quality and low spread volatility remains strong. We continue to see new participants investing in Agency CMBS," said Kimberly Johnson, Vice President of Multifamily Capital Markets.

All classes of FNA 2011-M8, 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.

 
                                  Weighted
                                   Average            Coupon          Offered
    Class   CUSIP   Original Face   Life     Coupon    Type   Spread   Price
                                                      Fixed
     A1   3136A1W76  $75,001,834    5.40     1.977     Rate     +53   100.50
                                                      Fixed
     A2   3136A16X8 $397,772,166    9.70     2.922     Rate     +72   100.50
                                                      Fixed
     AB   3136A16Y6  $64,469,874    9.02     2.905     Rate     +88    99.75
                                              1mo
                                              L+70   Floating
     FA   3136A16Z3 $181,799,413    9.02    7.0% Cap   Rate     +70   100.00
                                                     Inverse
                                                     Interest   Not     Not
     SA   3136A17A7 $181,799,413    8.59      n/a      Only   offered offered
                                                     Interest   Not     Not
      X   3136A17B5 $719,043,287    8.60      n/a      Only   offered offered
    Total           $719,043,287
 

    Collateral:                         105 Fannie Mae DUS MBS
    Geographic Distribution:            TX (21%), VA (19%), NY (17%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR): 1.75x
    Weighted Average
    Loan-to-Value (LTV):                63.4%
    Settlement Date:                    11/30/2011
 
    Lead Manager:                       Morgan Stanley
    Co-Managers:                        Amherst Securities and Citigroup

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M8) 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 Investor Relations 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.