Fannie Mae Prices $1.24 Billion Multifamily DUS REMIC (FNA 2014-M5) Under Its Fannie Mae GeMS Program

WASHINGTON, May 16, 2014 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its fifth Multifamily DUS^® REMIC in 2014 totaling $1.24 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 9, 2014.

"There was huge demand for short floaters this month.  We created a floater off of a block of seasoned Fixed + 1™ securities to meet some of that demand and also issued a 5-year fixed-rate bond," said Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets.  "Investor response was very positive, we were several times oversubscribed.  This was the first GeMS deal using this type of fixed/floater hybrid collateral.  It was a great chance for us to use a creative structure to help match up supply from our portfolio with continued strong investor demand in the space."

All classes of FNA 2014-M5 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 in the table below:

 

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
FA	$780,423,392	2.08	0.502	Floater/ WAC Cap	S+35	99.97
SA	$780,423,392	2.09	4.777	Inverse IO	(5.10%) ytf, 100CPY	5.19
ASQ1	$46,000,000	2.74	0.986	Fixed	S+12	100.00
ASQ2	$413,767,336	4.46	2.034	Fixed	S+25	101.00
X2	$459,767,336	4.28	3.643	WAC IO	Not offered	Not offered
Total	$1,240,190,728

 

Group 1 Collateral
UPB:	$780,423,392
Collateral:	136 Fannie Mae DUS MBS
Geographic Distribution:	CA (41.5%), TX (21.0%), WA (5.7%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.55x
Weighted Average
Loan-to-Value (LTV):	66.4%
Group 2 Collateral
UPB:	$459,767,336
Collateral:	87 Fannie Mae DUS MBS
Geographic Distribution:	CA (21.2%), MN (10.1%), FL (6.0%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.64x
Weighted Average
Loan-to-Value (LTV):	63.8%
Settlement Date:	May 30, 2014
Lead Manager:	Credit Suisse
Co-Managers:	Deutsche Bank and Jefferies

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M5) available on the Fannie Mae GeMS Archive page on 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 www.fanniemae.com and on the SEC's Web site at www.sec.gov.

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SOURCE Fannie Mae

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