Fannie Mae Prices $926.6 Million Multifamily DUS REMIC (FNA 2016-M2) Under Its GeMS™ Program

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Feb 18, 2016, 01:20 ET

WASHINGTON, Feb. 18, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its second Multifamily DUS^® REMIC in 2016 totaling $926.6 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on February 9, 2016.

"One of the strengths of the DUS program is the ability to offer borrowers more flexible terms than other securitized lending platforms," said Josh Seiff Fannie Mae's Vice President of Capital Markets and Trading. "This deal included our ARM 7-6™ (i.e., 7-year loan with 6% lifetime interest rate cap) floating rate MBS and a group of seasoned, fixed-rate MBS with about 20 years remaining to maturity. All of the tranches were oversubscribed in a quick-moving syndicate process despite general market volatility at the time. This execution demonstrated the value of Fannie Mae's flexible execution in bridging the divide between borrower needs and investor demand."

All classes of FNA 2016-M2 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
FA	$183,863,467	6.52	1.276	Floater/AFC	S+85	99.91
FX	$183,863,467	0.86	0.326	WAC IO	Not Offered	Not Offered
AV1	$45,639,000	3.38	1.470	Fixed	S+53	100.00
AV2	$419,454,000	6.60	2.152	Fixed	S+83	100.00
ABV1	$6,224,000	3.38	1.443	Fixed	Not Offered	Not Offered
ABV2	$57,198,178	6.60	2.131	Fixed	S+85	99.75
X2	$528,515,178	5.84	1.027	WAC IO	Not Offered	Not Offered
AL	$214,196,385	12.18	3.471	Fixed	S+150	102.00
X3	$214,196,385	4.39	1.944	WAC IO	Not Offered	Not Offered
Total	$926,575,030

Group 1 Collateral

UPB:	$183,863,467
Collateral:	26 Fannie Mae DUS MBS
Geographic Distribution:	FL (16.8%), IN (12.4%), TX (11.8%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	2.36x
Weighted Average
Loan-to-Value (LTV):	70.2%

Group 2 Collateral

UPB:	$528,515,178
Collateral:	68 Fannie Mae DUS MBS
Geographic Distribution:	MD (24.9%), NY (15.9%), TX (12.5%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.61x
Weighted Average
Loan-to-Value (LTV):	63.5%

Group 3 Collateral

UPB:	$214,196,385
Collateral:	86 Fannie Mae DUS MBS
Geographic Distribution:	CA (45.4%), NY (12.0%), PA (10.4%)
Weighted Average
Debt Service Coverage Ratio (DSCR):	1.85x
Weighted Average
Loan-to-Value (LTV):	56.3%

Settlement Date:	February 29, 2016

Lead Manager:	Credit Suisse
Co-Managers:	Bank of America Merrill Lynch Securities Inc
	KGS-Alpha Capital Markets
	Multi-Bank Securities Inc

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M2) 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