Fannie Mae Prices $719 Million Multifamily DUS REMIC Under Its GeMS™ Program

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Nov 09, 2011, 02:23 ET

WASHINGTON, Nov. 9, 2011 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its seventh Multifamily DUS REMIC in 2011 totaling $719 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS^™) program on November 8, 2011.

"The deal cleared quickly and priced well. Demand for securities with high credit quality and low spread volatility remains strong. We continue to see new participants investing in Agency CMBS," said Kimberly Johnson, Vice President of Multifamily Capital Markets.

All classes of FNA 2011-M8, 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	Offered Price
A1	3136A1W76	$75,001,834	5.40	1.977	Fixed Rate	+53	100.50
A2	3136A16X8	$397,772,166	9.70	2.922	Fixed Rate	+72	100.50
AB	3136A16Y6	$64,469,874	9.02	2.905	Fixed Rate	+88	99.75
FA	3136A16Z3	$181,799,413	9.02	1mo L+70 7.0% Cap	Floating Rate	+70	100.00
SA	3136A17A7	$181,799,413	8.59	n/a	Inverse Interest Only	Not offered	Not offered
X	3136A17B5	$719,043,287	8.60	n/a	Interest Only	Not offered	Not offered
Total		$719,043,287

Collateral:	105 Fannie Mae DUS MBS
Geographic Distribution:	TX (21%), VA (19%), NY (17%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.75x
Weighted Average
Loan-to-Value (LTV):	63.4%
Settlement Date:	11/30/2011

Lead Manager:	Morgan Stanley
Co-Managers:	Amherst Securities and Citigroup

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2011-M8) 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 Investor Relations 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