WASHINGTON, January 24, 2012 /PRNewswire/ --
Fannie Mae GeMS™ Issuance Reached $6 billion Milestone in the Program's First Year
Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.2 billion multifamily MBS(1) in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009. Total new issuance for 2011 was $23.8 billion, up from $16.4 billion in 2010. Fannie Mae also resecuritized $6.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program in 2011.
"Market activity in our multifamily securities is clearly gaining momentum. Tradable float, the volume of securities available to investors, has increased significantly over the past few years. Fannie Mae's multifamily MBS outstanding has grown to over $100 billion. As volumes increase and liquidity rises, we expect market participants will focus on Agency multifamily securities in the coming year," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.
Fannie Mae is the market leader in financing U.S. multifamily mortgages and has traditionally been a leader in this market. The company's DUS MBS securities provide market participants with easily-modeled cash flows and call protection in defined maturities of 5-, 7- and 10-years. Fannie Mae's GeMS program consists of structured multifamily securities created from Fannie Mae's portfolio of mortgage securities. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae's multifamily REMICs (ACES®) and multifamily Mega securities.
Highlights of Fannie Mae's multifamily activity in 2011 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the fourth quarter of 2011 totaled $7.2 billion. Total 2011 new issuance volumes reached $23.8 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $1.9 billion in the fourth quarter of 2011, including $1.8 billion in GeMS REMICs and $0.1 billion in GeMS Megas. For full-year 2011, Fannie Mae issued $6.0 billion in GeMS securities, including $4.4 billion in GeMS REMICs and $1.6 billion in GeMS Megas.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold $10.6 billion of multifamily mortgage securities in 2011, including $2.8 billion in the fourth quarter.(2)
For additional information about Fannie Mae's multifamily MBS products and issuance please refer to Basics of Multifamily MBS and our MBSenger Publication "Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.
Fannie Mae GeMS REMIC Issuance in the Fourth Quarter of 2011
FNA 2011-M7, Priced on October 13, 2011
Weighted Coupon Pricing Offered Class CUSIP Original Face Average Life Coupon Type Spread Price Fixed A1 3136A1F67 $90,000,000 4.95 2.049% Rate +55 100.50 Fixed A2 3136A1F75 $418,140,000 6.60 2.578% Rate +70 100.50 Fixed AB 3136A1F83 $69,281,000 6.31 2.508% Rate +82 99.75 Interest Not Not X 3136A1F91 $577,421,000 6.31 1.331% Only offered offered Total $577,421,000
Lead Manager: Credit Suisse
FNA 2011-M8, Priced on November 8, 2011
Weighted Original Average Coupon Pricing Offered Class CUSIP 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 FA 3136A16Z3 $181,799,413 9.02 L+70 Floating +70 100.00 7.0% Cap Rate Inverse Not Not SA 3136A17A7 $181,799,413 8.59 n/a Interest offered offered Only Interest Not Not X 3136A17B5 $719,043,287 8.60 n/a Only offered offered Total $719,043,287
Lead Manager: Morgan Stanley
Co-Manager: Amherst Securities and Citigroup
FNA 2011-M9, Priced on December 15, 2011
Weighted Original Average Coupon Pricing Class CUSIP Face Life Coupon Type Spread Price Fixed A1 3136A2W33 $101,252,108 6.66 2.322 Rate +55 100.50 Fixed A2 3136A2W41 $212,725,692 8.87 2.821 Rate +70 100.50 Fixed AB 3136A2W58 $42,815,155 8.16 2.773 Rate +85 99.75 1mo L+65 Floating FA 3136A2W66 $155,998,913 8.19 7.0% Cap Rate +65 100.00 Inverse Interest Not Not SA 3136A2W74 $155,998,913 7.83 n/a Only offered offered Interest Not Not X 3136A2W82 $512,791,868 7.82 n/a Only offered offered Total $512,791,868
Lead Manager: Bank of America Merrill Lynch
Co-Managers: Amherst Securities and J.P. Morgan
1)Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio securitization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.
2)Includes GeMS sold
Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future and expected increases in investments by market participants in Agency multifamily securities. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our Multifamily MBS Prospectus dated October 1, 2010 and our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"). 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 SEC available on the Investor Relations page of our Web site at www.fanniemae.comand on the SEC's Web site at http://www.sec.gov/.
References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.
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.
Resource Center: 1-800-732-6643
SOURCE Fannie Mae