Fannie Mae Prices $1.23 Billion Multifamily DUS REMIC (FNA 2014-M2) Under Its Fannie Mae GeMS™ Program

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Feb 19, 2014, 12:52 ET

WASHINGTON, Feb. 19, 2014 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its second Multifamily DUS^® REMIC in 2014 totaling $1.23 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on February 12, 2014.

"Investors snapped up short, seasoned DUS paper on bid lists last month, so we structured the M2 deal with three distinct groups of collateral to appeal to investor demand at the 2-year, 7-year and 10-year points on the curve," said Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets. "All three groups were very well received by a broad group of investors. There's a lot of demand for high quality structured product out there right now - the GeMS program gives Fannie Mae the ability to respond to that demand with flexible structuring and efficient execution."

All classes of FNA 2014-M2 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 included in the table below:

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered Price
ASQ1	$37,000,000	0.97	0.342	Fixed	S+5	100.00
ASQ2	$332,654,846	1.45	0.478	Fixed	S+12	100.00
X1	$369,654,846	0.91	4.522	WAC IO	Not offered	Not offered
ASV1	$48,900,000	3.90	1.916	Fixed	S+40	101.00
ASV2	$305,174,490	6.77	2.777	Fixed	S+37	101.00
X2	$354,074,490	5.84	0.545	WAC IO	Not offered	Not offered
A1	$67,037,520	5.24	2.476	Fixed	S+50	101.00
A2	$382,388,487	9.74	3.513	Fixed	S+55	101.00
AB1	$9,141,480	5.24	2.140	Fixed	S+58	99.00
AB2	$52,143,885	9.74	3.491	Fixed	S+68	99.75
X3	$510,711,372	8.50	0.414	WAC IO	T+130	2.67
Total	$1,234,440,708

Group 1 Collateral
UPB:	$369,654,846
Collateral:	58 Fannie Mae DUS MBS
Geographic Distribution:	CA (37.0%), TX (27.7%), WA (7.0%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.97x
Weighted Average
Loan-to-Value (LTV):	65.61%

Group 2 Collateral
UPB:	$354,074,490
Collateral:	79 Fannie Mae DUS MBS
Geographic Distribution:	TX (19.4%), CA (9.4%), VA (9.0%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.60x
Weighted Average
Loan-to-Value (LTV):	68.85%

Group 3 Collateral
UPB:	$510,711,372
Collateral:	96 Fannie Mae DUS MBS
Geographic Distribution:	TX (22.7%), CA (13.3%), IL (12.3%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.45x
Weighted Average
Loan-to-Value (LTV):	69.45%

Settlement Date:	February 28, 2014

Lead Manager:	Citigroup
Co-Managers:	RBS and Goldman Sachs & Co.

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2014-M2) 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