Fannie Mae Prices $860.4 Million Multifamily DUS REMIC (FNA 2016-M3) Under Its GeMS™ Program

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Mar 11, 2016, 08:30 ET

WASHINGTON, March 11, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its third Multifamily DUS^® REMIC in 2016 totaling $860.4 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on March 8, 2016.

"We have rallied over the past few weeks, but spreads for DUS MBS are still very attractive on a historical basis," said Josh Seiff Fannie Mae's Vice President of Capital Markets and Trading. "We are very pleased with the broad interest in the M3 deal – we had more than 30 accounts involved, including a handful of accounts new to the program. Lower spread volatility and consistent high credit quality are strong enticements for new investors in this market."

All classes of FNA 2016-M3 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
ASQ1	$35,000,000	3.46	1.468	Fixed	Not Available	Not Available
ASQ2	$285,116,260	6.23	2.263	Fixed/AFC	S+87	100.00
X1	$320,116,260	4.35	2.431	WAC IO	Not Offered	Not Offered
A1	$46,969,000	5.90	2.256	Fixed	S+71	101.00
A2	$428,616,391	9.83	2.702	Fixed	S+92	101.00
AB1	$6,387,000	5.90	2.056	Fixed	Not Available	Not Available
AB2	$58,280,763	9.83	2.606	Fixed	S+97	99.74
X2	$540,253,154	8.99	0.555	WAC IO	Not Offered	Not Offered
Total	$860,369,414

Group 1 Collateral

UPB:	$320,116,260
Collateral:	68 Fannie Mae DUS MBS
Geographic Distribution:	TX (17.2%), NY (21.7%), MA (15.8%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.66x
Weighted Average
Loan-to-Value (LTV):	63.1%

Group 2 Collateral

UPB:	$540,253,154
Collateral:	50 Fannie Mae DUS MBS
Geographic Distribution:	CA (21.9%), TX (17.3%), FL (10.9%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.59x
Weighted Average
Loan-to-Value (LTV):	66.4%

Settlement Date:	March 31, 2016

Lead Manager:	Citigroup
Co-Managers:	Morgan Stanley
	Amherst Pierpont Securities
	Ramirez & Co., Inc.

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M3) 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