Fannie Mae Provides Sustained Liquidity to the Multifamily Mortgage Market in the First Half of 2011

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Jul 27, 2011, 04:11 ET

WASHINGTON, July 27, 2011 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that in the first half of 2011, the company issued $10.3 billion in MBS backed by new multifamily acquisitions delivered by our lenders, and sold $5.3 billion in MBS pools and GeMS™ structured transactions, enhancing tradable float and supporting liquidity in the multifamily MBS market.

"In today's economic environment, Fannie Mae continues to deliver liquidity to the multifamily housing market and provide investment options to market participants," said Kimberly Johnson, Fannie Mae Vice President for Multifamily Capital Markets. "Through our multifamily MBS issuance (including DUS MBS, GeMS™ structured transactions and portfolio activities), Fannie Mae provided market participants with considerable volume and a variety of execution options in the first half of 2011."

Beginning in 2009, Fannie Mae made reinvigoration of its multifamily MBS business and broadening the investor base a top priority. By ramping up its MBS execution and transforming the multifamily capital markets business, Fannie Mae has shifted from being primarily a multifamily portfolio market participant to one that provides liquidity to the multifamily market mainly through securitization.

Fannie Mae provides the largest share of U.S. multifamily mortgage financing, and traditionally has been a leader in this market. The company's DUS MBS securities provide market participants with investment securities offering easily-modeled cash flows, superior call protection and positive convexity in defined maturities of 5-, 7- and 10-years. Fannie Mae's Guaranteed Multifamily Structures (Fannie Mae GeMS™) program consists of structured multifamily securities created from Fannie Mae's portfolio. Fannie Mae GeMS™ offer market participants block size investments, collateral diversity and pricing close to par through its multifamily REMICs (ACES) and multifamily Mega securities.

Highlights of Fannie Mae's activity in the first half of 2011 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes through June 30, 2011 totaled $10.3 billion.

2) GeMS ISSUANCE

Issuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $2.6 billion, including $1.2 billion in GeMS™ ACES and $1.4 billion in GeMS™ Megas through June 30, 2011.

3) SALES FROM PORTFOLIO

Fannie Mae's Capital Markets group has sold $5.3 billion of multifamily mortgage securities from its portfolio through June 30, 2011.

For additional information about Fannie Mae's multifamily MBS products and issuance please refer to Basics of Multifamily MBS and our MBSenger Publication "Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on www.fanniemae.com

GeMS™ Issuance Year-to-Date through June 30, 2011 FNA 2011-M1, Priced on May 17, 2011
Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Spread	Price
A1	31397UPD5	$30,225,000	4.09	1.981%	Fixed Rate	S+45	99.5
A2	31397UPE5	$59,800,000	8.76	3.607%	Fixed Rate	S+67	99.5
A3	31397UPF0	$353,842,465	9.84	3.763%	Fixed Rate	S+65	99.5
FA	31397UPG8	$140,122,610	9.31	1mo L+45, 7% Cap	Fixed Rate	L+45	100
SA	31397UPH6	$140,122,610	9.31	6.353%	Inverse Interest Only	Not offered	Not offered
X	31397UPJ2	$583,990,075	9.31	0.272%	Interest Only	Not Offered	Not Offered
Total		$583,990,075
Lead Manager: Credit Suisse Co-Managers: Amherst Securities Group, L.P. and Deutsche Bank Securities

FNA 2011-M2, Priced on Jun 17, 2011
Class	CUSIP	Original Face	Weighted Average Life	Coupon	Coupon Type	Spread	Price
A1	31397U3L1	$41,197,000	3.89	2.070%	Fixed Rate	S+47	100.5
A2	31397U3M9	$41,795,000	8.99	3.710%	Fixed Rate	S+65	100.5
A3	31397U3N7	$342,229,854	9.77	3.740%	Fixed Rate	S+66	100.375
AB	31397U3K3	$57,984,798	9.13	3.730%	Fixed Rate	S+78	99.75
FA	31397U3P2	$110,559,670	9.12	1mo L+45, 7% Cap	Floating Rate	L+45	100.0
SA	31397U3Q0	$110,559,670	9.12	6.361%	Inverse Interest Only	Not Offered	Not Offered
X	31397U3R8	$593,766,322	9.12	0.126%	Interest Only	Not Offered	Not Offered
Total		$593,766,322
Lead Manager: Amherst Securities Group LP Co-Managers: Bank of America Merrill Lynch

Fannie Mae GeMS Megas
Month	Mega Pool	Coupon	UPB (In Millions)
Jan-11	FN0000	3.584%	$104
Jan-11	FN0001	3.763%	$237
Jan-11	FN0002	3.309%	$109
Mar-11	FN0003	4.301%	$220
Mar-11	FN0004	3.632%	$120
Mar-11	FN0005	3.375%	$196
Mar-11	FN0006	3.421%	$84
Mar-11	FN0007	3.459%	$25
Mar-11	FN0008	3.383%	$37
Mar-11	FN0009	3.416%	$137
Mar-11	FN0010	3.841%	$19
Mar-11	FN0013	3.462%	$37
Mar-11	FN0014	3.104%	$33
May-11	FN0018	3.462%	$37
May-11	FN0022	3.104%	$35
Total			$1,428

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 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