Fannie Mae Prices $977 Million Multifamily DUS REMIC Under Its GeMS™ Program

News provided by

Fannie Mae

15 Feb, 2012, 21:57 GMT

WASHINGTON, February 15, 2012 /PRNewswire/ --

Fannie Mae (OTC Bulletin Board: FNMA) priced its second Multifamily DUS REMIC in 2012 totaling $977 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on February 15, 2012.  

"This month's GeMS deal was the program's largest to date, and several new investors participated. Increasing deal sizes and issuing with higher frequency has enhanced liquidity over the past six months, and participation has grown steadily. Wells Fargo was a seamless partner in 2012-M2, and their collaborative efforts led to broader distribution and excellent execution," said Kimberly Johnson, Vice President of Multifamily Capital Markets.

All classes of FNA 2012-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 included in the table below.

                                                                   
    Class Original Face    Weighted     Coupon  Coupon   Spread   Offered 
                          Average Life           Type              Price
                                                 Fixed
     A1   $151,800,000       5.51        1.846    Rate     +45     101.00
                                                 Fixed
     A2   $707,699,966       9.80        2.784    Rate     +65     101.00
                                                 Fixed
     AB   $117,204,000       9.04        2.632    Rate     +77      99.75
                                                Interest  Not yet  Not yet
      X   $976,703,966       9.04        0.646    Only    offered  offered
    Total $976,703,966

    Collateral:                         190 Fannie Mae DUS MBS
    Geographic Distribution:            CA (20%), TX (11%), NY (10%)
    Weighted Average
    Debt Service Coverage Ratio (DSCR): 2.01x
    Weighted Average
    Loan-to-Value (LTV):                64.5%
    Settlement Date:                    February 29, 2012

    Lead Manager:                       Wells Fargo Securities
    Co-Managers:                        J.P. Morgan and Morgan Stanley

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2012-M2) 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 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.