Fannie Mae Priced $1 Billion Multifamily DUS REMIC (FNA 2022-M1) Under Its GeMS Program

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Jan 24, 2022, 12:30 ET

WASHINGTON, Jan. 24, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $1 billion Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 19, 2022. FNA 2022-M1 marks the first Fannie Mae GeMS issuance of 2022.

"We are pleased to kick off 2022 with another milestone in the market's transition away from LIBOR, with our first multifamily REMIC quoted using the spread to the Secured Overnight Financing Rate (SOFR) swap curve," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "Market participants had begun socializing the use of the SOFR swap curve ("p-spread") when quoting fixed-rate ACMBS trades in late 2021 and the transition of new-issue ACMBS to this benchmark is one more step in that journey. The M1, with its discount, 10-year fixed-rate collateral, found strong demand in the market with the A2 tranche pricing at a 52-basis-point spread to the SOFR swap curve, equating to a 26-basis-point spread to the LIBOR swap curve."

All classes of FNA 2022-M1 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
Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread*	Price
A1	$64,600,000	6.47	1.669	WAC	S + 36	98.78
A2	$737,643,749	9.69	1.669	WAC	S + 52	96.13
A3	$200,000,000	9.74	1.580	Fixed	Not Offered	Not Offered
X3	$200,000,000	9.24	0.089	WAC IO	Not Offered	Not Offered
Total	$1,002,243,749

* The spread on FNA 2022-M1 was priced using the SOFR swap curve

Group 1 Collateral

UPB:	$1,002.243,749
Collateral:	43 Fannie Mae DUS MBS
Geographic Distribution:	TX (18.74%), UT (11.22%), FL (9.11%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.96x
Weighted Average Loan-to-Value (LTV):	62.9%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M1) available on the Fannie Mae GeMS Archive page.

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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.

SOURCE Fannie Mae