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

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Feb 14, 2020, 15:30 ET

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
Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	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

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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