Fannie Mae Issues $14.4 Billion of Multifamily MBS in the Fourth Quarter of 2016

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Jan 27, 2017, 09:00 ET

WASHINGTON, Jan. 27, 2017 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) announced today that the company issued $14.4 billion¹ of multifamily MBS in the fourth quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS^®) program. Fannie Mae also resecuritized $2.9 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS^TM) program.

"We led the market in 2016 by issuing a record $54.9 billion of multifamily MBS, finishing the year strong with $14.4 billion in new issue securities in the fourth quarter," said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae. "This is the highest volume in the history of the DUS program and is a testament to Fannie Mae's risk-sharing model, which has provided pricing transparency and risk alignment to borrowers, lenders, and investors for the last 28 years. We look forward to continuing to provide liquidity to the multifamily market in 2017."

The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities ranging from 5 to 30 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 include consistent monthly issuance, block size transactions, collateral diversity, and pricing close to par.

Highlights of Fannie Mae's multifamily activity in the fourth quarter of 2016 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the fourth quarter of 2016 totaled $14.4 billion.

2) FANNIE MAE GeMS ISSUANCE/STRUCTURED SECURITIES
Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.9 billion in the fourth quarter of 2016. This issuance volume included three Fannie Mae GeMS REMIC transactions. In addition, Fannie Mae issued $1.1 billion in Non-GeMS Megas backed by DUS MBS collateral from the broker-dealer community in the fourth quarter of 2016, adding to the liquidity of Fannie Mae DUS MBS.

3) FANNIE MAE SALES
Fannie Mae Capital Markets sold $3.8 billion of Fannie Mae multifamily mortgage securities from its portfolio in the fourth quarter of 2016.²

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-Five Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.

Fannie Mae GeMS Issuance in the Fourth Quarter of 2016

FNA 2016-M13, Priced on December 7, 2016

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
FA	$422,298,260	6.53	1.225	Floater	L+67	99.92
FX	$422,298,260	0.83	0.334	WAC IO	Not Offered	Not Offered
A1	$59,356,275	6.01	2.477	WAC	S+57	100.06
A2	$315,000,000	9.69	2.477	WAC	S+70	96.87
Total	$796,654,535

Lead Manager: Goldman, Sachs & Co.
Co-Managers: J.P. Morgan Chase & Co., Morgan Stanley, and Loop Capital Markets

FNA 2016-M12, Priced on November 3, 2016

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
AV1	$25,000,000	5.83	1.998	Fixed	Not Available	Not Available
AV2	$193,759,658	6.78	2.308	Fixed/AFC	S+52	102.00
X1	$218,759,658	6.19	0.075	WAC IO	Not Offered	Not Offered
A1	$101,371,000	5.80	2.132	Fixed	S+56	101.00
A2	$614,191,120	9.70	2.449	WAC	S+70	101.00
AB1	$13,823,000	5.80	1.931	Fixed	Not Available	Not Available
AB2	$83,753,653	9.70	2.362	Fixed/AFC	S+73	99.75
X2	$813,138,773	8.72	0.084	WAC IO	Not Offered	Not Offered
Total	$1,031,898,431

Lead Manager: BofA Merrill Lynch
Co-Managers: Goldman, Sachs & Co., Jefferies LLC, and Mischler Financial Group

FNA 2016-M11, Priced on October 4, 2016

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
A1	$67,857,000	6.01	2.080	Fixed	S+58	101.00
A2	$473,700,000	9.69	2.369	AFC	S+73	101.00
AB1	$9,253,000	6.01	1.886	Fixed	Not Available	Not Available
AB2	$64,595,739	9.69	2.254	Fixed	S+76	99.74
X1	$615,405,739	8.79	0.501	WAC IO	Not Offered	Not Offered
AL	$463,932,612	10.91	2.944	Fixed	S+120	101.50
X2	$463,932,612	3.31	2.727	WAC IO	Not Offered	Not Offered
Total	$1,079,338,351

Lead Manager: Credit Suisse
Co-Managers: Amherst Pierpont Securities, BofA Merrill Lynch, and Ramirez & Co.

¹Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.

²Includes Fannie Mae GeMS sold and excludes sales of CMBS, MRB, ASAP purchases, and DMBS.

This release contains forward-looking statements. 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 Annual Report on Form 10-K and Quarterly Report on Form 10-Q 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 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 fanniemae.com and follow us on twitter.com/fanniemae.

SOURCE Fannie Mae