Fannie Mae Multifamily Issuance Tops $10 Billion in Fourth Quarter
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
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
Class CUSIP Original Average Coupon Coupon Spread
FACE Life (%) Type Price
ASQ1 3136A96B9 $ 13,274,000 1.43 1.238 Fixed S+10 101.00
ASQ2 3136A96C7 $ 385,774,467 2.80 0.953 Fixed S+13 101.00
X1 3136A96D5 $ 399,048,467 2.27 4.114 WAC IO Not Not
A1 3136A96E3 $ 107,250,000 5.72 1.364 Fixed S+25 101.00
A2 3136A96F0 $ 431,779,988 9.82 2.184 Fixed S+43 101.00
AB1 3136A96G8 $ 14,600,000 5.72 1.234 Fixed S+35 99.75
AB2 3136A96H6 $ 58,800,000 9.82 2.222 Fixed S+61 99.75
X2 3136A96J2 $ 612,429,988 8.59 0.504 WAC IO Not Not
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
ASQ1 3136A9MJ4 $ 28,000,000 2.12 0.538 Fixed S+12 100.00
ASQ2 3136A9MK1 $ 471,894,566 4.21 1.114 Fixed S+20 101.00
X1 3136A9ML9 $ 499,894,566 3.62 4.418 WAC IO Not Not
A1 3136A9MM7 $ 87,735,000 5.50 1.361 Fixed S+24 101.00
A2 3136A9MN5 $ 405,353,650 9.79 2.301 Fixed S+45 101.00
AB1 3136A9MP0 $ 11,964,000 5.50 1.233 Fixed S+35 99.75
AB2 3136A9MQ8 $ 55,275,362 9.79 2.278 Fixed S+57 99.75
X2 3136A9MR6 $ 560,328,012 8.61 0.646 WAC IO Not Not
AL 3136A9MS4 $ 89,511,907 14.07 2.987 Fixed S+60 101.61
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
Contact: Andrew Wilson, +1-202-752-5168
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