Fannie Mae Prices $501 Million Multifamily DUS REMIC Under Its GeMS™ Program

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Jul 18, 2011, 09:00 ET

WASHINGTON, July 18, 2011 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its third Multifamily DUS REMIC in 2011 totaling $501 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on Thursday, July 14, 2011.

The deal structure for this Multifamily DUS REMIC incorporates the built-in flexibility characteristics of combinable and recombinable (RCR) classes. All classes of this security, FNA 2011-M4, are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. Yield maintenance prepayment premiums apply to all underlying loans. The structure details for the multi-tranche offering are included in the table below.


Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Spread	Price
A1	3136A0FJ1	51,698,937	5.36	2.548%	Fixed Rate	S+50	100.50
A2	3136A0FK8	289,884,241	9.83	3.726%	Fixed Rate	S+70	100.00
AB	3136A0FH5	46,019,809	9.15	3.682%	Fixed Rate	S+80	99.75
FE	3136A0FL6	16,927,167	5.37	1mo L+60, 6.5% Cap	Floating Rate	L+60	100.00
FN	3136A0FN2	96,902,122	9.83	1mo L+80, 6.5% Cap	Floating Rate	L+80	100.00
SE	3136A0FM4	16,927,167	5.36	5.714%	Inverse Interest Only	Not Offered	Not Offered
SN	3136A0FP7	96,902,122	9.33	5.514%	Inverse Interest Only	Not Offered	Not Offered
X	3136A0FQ5	501,432,276	8.73	0.266%	Interest Only	Not Offered	Not Offered
Total		501,432,276


Collateral:	84 Fannie Mae DUS MBS
Geographic Distribution:	CA (19.09%), NV (14.99%), FL (12.33%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.69x
Weighted Average
Loan-to-Value (LTV):	63.04%
Settlement Date:	7/29/2011

Lead Manager:	Bank of America Merrill Lynch
Co-Managers:	Amherst Securities Group LP
	Morgan Stanley

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M4) available on Fannie Mae's Basics of Multifamily MBS site at 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 Investors page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

SOURCE Fannie Mae