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Fannie Mae Prices $1.03 Billion Multifamily DUS REMIC (FNA 2020-M5) Under Its GeMS Program

February 14, 2020 GMT

WASHINGTON, Feb. 14, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced its second Multifamily DUS® REMIC in 2020 totaling $1.03 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on February 13, 2020.

“We were pleased with the execution of the 2020-M5, our $1 billion February GeMS deal, given the low-yield rate environment and market volatility,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “In addition to our traditional 10-year fixed-rate collateral, the M5 offered a floating-rate execution off of our ARM 7-6 product, a LIBOR-based floater with an embedded 6% cap on the pass-through rate. This will likely be one of our last LIBOR-based floating rate GeMS executions as we work to develop a SOFR-based variable-rate product to meet the needs of our borrowers, as well as the future demands of our investors.”

All classes of FNA 2020-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 can be found in the table below:

Class

Original Face

Weighted
Average
Life

Coupon (%)

Coupon Type

Spread

Offered

Price

FA

$219,444,395

6.08

2.11

Floater/AFC

L+46

99.86

FX

$219,444,395

0.36

0.60

WAC IO

Not Offered

Not Offered

A1

$81,900,000

6.31

1.87

Fixed

S+40

100.00

A2

$570,862,710

9.79

2.21

Fixed

S+54

100.99

A3

$165,000,000

9.91

2.19

Fixed

S+50

101.17

X

$652,762,710

8.91

0.20

WAC IO

Not Offered

Not Offered

X3

$165,000,000

9.41

0.18

WAC IO

Not Offered

Not Offered

Total

$1,037,207,105






Group 1 Collateral




UPB:

$219,444,396

Collateral:

35 Fannie Mae DUS MBS

Geographic Distribution:

TX (41.77%), IL (10.5%), IN (9.57%)

Weighted Average


Debt Service Coverage Ratio (DSCR):

1.47x

Weighted Average


Loan-to-Value (LTV):

69.1%

Group 2 Collateral




UPB:

$817,762,710

Collateral:

69 Fannie Mae DUS MBS

Geographic Distribution:

TX (14.55%), VA (13.54%), GA (9.59%)

Weighted Average


Debt Service Coverage Ratio (DSCR):

1.50x

Weighted Average


Loan-to-Value (LTV):

67.4%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M5) available on the Fannie Mae GeMS Archive page https://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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Fannie Mae Newsroom
https://www.fanniemae.com/news

Photo of Fannie Mae
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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