Fannie Mae Prices $763 Million Multifamily DUS REMIC Under Its GeMS™ Program

News provided by

Jan 17, 2012, 09:42 ET

WASHINGTON, Jan. 17, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its first Multifamily DUS REMIC in 2012 totaling $763 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 13, 2012.

"A wide spectrum of investors came out of the gate with orders, and 2012-M1 was quickly oversubscribed. Based on the origination volumes we have seen coming through the Agency execution, and the continued demand for GeMS, I anticipate larger deal sizes and monthly issuance this year. Even as analysts are forecasting continued volatility in the broader CMBS space, there is clearly a strong appetite for Agency CMBS," said Kimberly Johnson, Vice President of Multifamily Capital Markets.

All classes of FNA 2012-M1 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	Original Face	Weighted Average Life	Coupon	Coupon Type	Spread	Offered Price
A1	$80,670,000	5.42	1.811	Fixed Rate	S+48	100.50
A2	$437,879,820	9.69	2.729	Fixed Rate	S+70	100.50
AB	$70,700,000	9.02	n/a	Fixed Rate	Not offered	Not offered
FA	$174,036,780	9.00	1mo L+65 7.0% Cap	Floating Rate	L+65	100.00
SA	$174,036,780	9.00	n/a	Inverse Interest Only	Not offered	Not offered
X	$763,286,600	9.02	n/a	Interest Only	Not offered	Not offered
Total	$763,286,600

Collateral:	118 Fannie Mae DUS MBS
Geographic Distribution:	CA (27%), TX (16%), NY (12%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.70x
Weighted Average
Loan-to-Value (LTV):	65.04%
Settlement Date:	1/30/2012

Lead Manager:	Credit-Suisse
Co-Managers:	J.P. Morgan and Wells Fargo

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2012-M1) available on Fannie Mae's GeMS Archives page at www.fanniemae.com.

Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws, including statements relating to anticipated deal sizes and issuance and future appetite for Agency CMBS. Actual results, deal sizes and issuances could differ materially from what is anticipated in these forward-looking statements as a result of numerous risk factors, including those discussed in the "Risk Factors" section of our Multifamily REMIC Prospectus dated as of June 1, 2010 and the related prospectus supplement for the 2012-M1 transaction. 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 applicable prospectus, related prospectus supplement and other offering documents. 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