Fannie Mae Multifamily Issuance Tops $10 Billion in Fourth Quarter PR Newswire WASHINGTON, Jan. 18, 2013 WASHINGTON, Jan. 18, 2013 /PRNewswire/ --Fannie Mae (OTC Bulletin Board: FNMA) issued approximately $10.8 billion^1 of multifamily MBS in the fourth quarter of 2012, backed by new multifamily loans delivered by its lenders. Total issuance for 2012 was $33.1 billion, which was up from $23.8 billion in 2011. Fannie Mae also resecuritized $2.2 billion of DUS^® MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS^TM) program in the fourth quarter, bringing the total GeMS issuance for 2012 to $10 billion. "Market activity for our securities was robust in 2012 with total issuance topping $33 billion," said Kimberly Johnson, Senior Vice President of Multifamily Capital Markets, Fannie Mae. "Issuance was particularly strong in the fourth quarter, in part due to the Fed's aggressive bond-buying program, which has helped to keep borrowing costs at record lows. Private-sector lending has shown signs of growth as well, adding liquidity for all market participants." The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten years. Fannie Mae's GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets.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 the fourth quarter of 2012 include the following: 1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS New multifamily MBS business volumes in the fourth quarter of 2012 totaled approximately $10.8 billion. 2) FANNIE MAE GeMS & ACES ISSUANCE Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.2 billion in the fourth quarter of 2012. This includes two Fannie Mae GeMS REMIC transactions. In addition, dealers issued three multifamily REMICs backed by $1.1 billion of DUS MBS in the fourth quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS. The combined Fannie Mae GeMS and ACES issuance backed by DUS MBS was $13.9 billion in 2012. 3) FANNIE MAE SALES Fannie Mae Capital Markets sold approximately $1.9 billion of multifamily mortgage securities from its portfolio in the fourth quarter of 2012.^2 For additional information about Fannie Mae's multifamily MBS products and issuance please refer to the Multifamily MBS webpage and the MBSenger^® Publication "Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com. Fannie Mae GeMS Issuance in the Fourth Quarter of 2012 FNA 2012-M17, Priced on November 9, 2012 Weighted Offered Class CUSIP Original Average Coupon Coupon Spread FACE Life (%) Type Price (Years) ASQ1 3136A96B9 $ 13,274,000 1.43 1.238 Fixed S+10 101.00 Rate ASQ2 3136A96C7 $ 385,774,467 2.80 0.953 Fixed S+13 101.00 Rate X1 3136A96D5 $ 399,048,467 2.27 4.114 WAC IO Not Not Offered Offered A1 3136A96E3 $ 107,250,000 5.72 1.364 Fixed S+25 101.00 Rate A2 3136A96F0 $ 431,779,988 9.82 2.184 Fixed S+43 101.00 Rate AB1 3136A96G8 $ 14,600,000 5.72 1.234 Fixed S+35 99.75 Rate AB2 3136A96H6 $ 58,800,000 9.82 2.222 Fixed S+61 99.75 Rate X2 3136A96J2 $ 612,429,988 8.59 0.504 WAC IO Not Not Offered Offered Total $1,011,478,455 Lead Manager: Citigroup Co-Managers: Amherst Securities Group and Barclays Capital FNA 2012-M14, Priced on October 11, 2012 Weighted Coupon Offered Class CUSIP Original Average Coupon Spread FACE Life (%) Type Price (Years) ASQ1 3136A9MJ4 $ 28,000,000 2.12 0.538 Fixed S+12 100.00 Rate ASQ2 3136A9MK1 $ 471,894,566 4.21 1.114 Fixed S+20 101.00 Rate X1 3136A9ML9 $ 499,894,566 3.62 4.418 WAC IO Not Not Offered Offered A1 3136A9MM7 $ 87,735,000 5.50 1.361 Fixed S+24 101.00 Rate A2 3136A9MN5 $ 405,353,650 9.79 2.301 Fixed S+45 101.00 Rate AB1 3136A9MP0 $ 11,964,000 5.50 1.233 Fixed S+35 99.75 Rate AB2 3136A9MQ8 $ 55,275,362 9.79 2.278 Fixed S+57 99.75 Rate X2 3136A9MR6 $ 560,328,012 8.61 0.646 WAC IO Not Not Offered Offered AL 3136A9MS4 $ 89,511,907 14.07 2.987 Fixed S+60 101.61 Rate Total $1,149,734,485 Lead Manager: Bank of America Merrill Lynch Co-Managers: Jefferies and Morgan Stanley ^1 Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period.The number excludes Fannie Mae portfolio resecuritization transactionsand conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities. ^2 Includes Fannie Mae GeMS sold. Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. 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 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.com and on the SEC's Web site at 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 enables people to buy, refinance, or rent a home. SOURCE Fannie Mae Website: http://www.fanniemae.com Contact: Andrew Wilson, +1-202-752-5168
Fannie Mae Multifamily Issuance Tops $10 Billion in Fourth Quarter
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