Fannie Mae Prices $1.17 Billion Multifamily DUS REMIC (FNA 2015-M17) Under Its GeMS™ Program

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Dec 16, 2015, 05:21 ET

WASHINGTON, Dec. 16, 2015 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its eleventh Multifamily DUS^® REMIC in 2015 totaling $1.17 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on December 11, 2015.

"Our December deal featured 96 of our ARM 7-6^™ (i.e., 7-year loan with 6% lifetime interest rate cap) loans in group 2 – approximately $637 million in collateral. This is a great product for both borrowers and investors," said Josh Seiff, Fannie Mae's Vice President of Capital Markets and Trading. "The ARM 7-6 provides borrowers with the flexibility of floating rate funding along with the protection of an embedded interest rate cap – making it accessible to a much broader range of multifamily borrowers. Investors have the opportunity to invest in a much more diversified pool of floating rate bonds – the average loan size is less than $7 million – at an attractive spread."

All classes of FNA 2015-M17 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 are in the table below:

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
FA1	$108,891,675	6.31	1.260	Floater/AFC	Not Offered	Not Offered
FA	$637,627,053	5.99	1.129	Floater/AFC	100 DM	99.51
FX	$637,627,053	6.00	0.108	WAC IO	Not Offered	Not Offered
A1	$57,982,000	5.66	2.520	Fixed	S+65	101.00
A2	$363,116,807	9.73	3.038	WAC	S+89	100.23
X3	$421,098,807	9.17	0.071	WAC IO	Not Offered	Not Offered
Total	$1,167,617,535

Group 1 Collateral

UPB:	$108,891,675
Collateral:	13 Fannie Mae DUS Capped 7-4 ARMs
Geographic Distribution:	CO (33.5%), FL (22.3%), TX (16.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	2.42x
Weighted Average
Loan-to-Value (LTV):	74.1%

Group 2 Collateral

UPB:	$637,627,053
Collateral:	96 Fannie Mae DUS Capped 7-6 ARMs
Geographic Distribution:	TX (37.5%), CA (8.3%), TN (7.4%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	2.41x
Weighted Average
Loan-to-Value (LTV):	70.4%

Group 3 Collateral

UPB:	$421,098,807
Collateral:	53 Fannie Mae DUS MBS
Geographic Distribution:	TX (21.1%), FL (17.0%), CO (9.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.73x
Weighted Average
Loan-to-Value (LTV):	69.9%


Settlement Date:	December 30, 2015

Lead Manager:	Goldman, Sachs & Co.
Co-Managers:	Morgan Stanley
	Amherst Pierpont Securities
	Great Pacific Securities

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2015-M17) available on the Fannie Mae GeMS Archive page on www.fanniemae.com.

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