Fannie Mae Prices $857.2 Million Multifamily DUS REMIC (FNA 2018-M12) Under Its GeMS Program

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Sep 11, 2018, 10:46 ET

WASHINGTON, Sept. 11, 2018 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its eighth Multifamily DUS^® REMIC in 2018 totaling $857.2 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on September 6, 2018.

"The M12 provides investors with the opportunity to invest in a 12-year, fixed-rate, call-protected tranche," said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. "With the flattening of the yield curve, we have seen more borrower demand for longer-term lending, which has coincided with increased willingness in the investor community to seek higher yields further out on the curve. The flexibility of the DUS program and its product offerings has enabled us to bridge the changing needs of both communities."

All classes of FNA 2018-M12 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	$56,691,000	6.17	2.57	Floater/AFC	Not offered	Not offered
FA2	$31,554,568	6.29	2.57	Floater/AFC	Not offered	Not offered
FA3	$24,388,993	6.22	2.57	Floater/AFC	Not offered	Not offered
FX1	$112,634,561	0.38	0.516	WAC IO	Not offered	Not offered
FA	$355,818,855	6.34	2.469	Floater/AFC	40 DM	99.83
FX	$355,818,855	0.61	0.354	WAC IO	Not offered	Not offered
A1	$45,685,000	7.34	3.546	Fixed/AFC	S+48	100.99
A2	$343,061,341	9.77	3.639	WAC	S+67	100.68
Total	$857,199,757
Offered	$744,565,196

Group 1 Collateral

UPB:	$112,634,561
Collateral:	7 Fannie Mae DUS MBS
Geographic Distribution:	NY (50.3%), CA (28.0%), MI (10.1%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.21x
Weighted Average
Loan-to-Value (LTV):	73.2%


Group 2 Collateral

UPB:	$355,818,855
Collateral:	43 Fannie Mae DUS MBS
Geographic Distribution:	TX (42.9%), GA (28.3%), NC (6.6%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.58x
Weighted Average
Loan-to-Value (LTV):	72.7%


Group 3 Collateral

UPB:	$388,746,341
Collateral:	42 Fannie Mae DUS MBS
Geographic Distribution:	TX (20.3%), AZ (11.0%), CA (10.3%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.41x
Weighted Average
Loan-to-Value (LTV):	64.8%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2018-M12) available on the Fannie Mae GeMS Archive page http://www.fanniemae.com/portal/jsp/mbs/mbsmultifamily/gems_archive.html.

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 helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

SOURCE Fannie Mae