Fannie Mae Supports the Multifamily Market with Robust Issuance in the Second Quarter of 2012

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Jul 13, 2012, 08:30 ET

WASHINGTON, July 13, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued approximately $6.7 billion(1) of multifamily MBS in the second quarter of 2012, backed by new multifamily loans delivered by our lenders. Year-to-date issuance is $13.8 billion. Fannie Mae also resecuritized $1.2 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the second quarter.

"Increasing property values, solid operating incomes, and a low interest rate environment are all creating tailwinds. Issuance and resecuritization volumes remain elevated as the rental housing market continues its expansion and credit remains strong. Secondary market activity is also robust – there were seven Multifamily REMICS issued in the first half of the year," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.

The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten years. Fannie Mae's GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae's multifamily REMICs (ACES) and multifamily Mega securities.

Highlights of Fannie Mae's multifamily activity in the second quarter of 2012 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS

New multifamily MBS business volumes in the second quarter of 2012 totaled approximately $6.7 billion.

2) FANNIE MAE GeMS ISSUANCE

Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $1.2 billion in the second quarter of 2012. This includes a $753.4 million Fannie Mae GeMS REMIC and $438.3 million in four Fannie Mae GeMS Megas. Dealers issued three multifamily REMICs backed by $1.6 billion of DUS MBS in the second quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.

3) FANNIE MAE SALES

Fannie Mae Capital Markets sold approximately $1.6 billion of multifamily mortgage securities from its portfolio in the second quarter of 2012.(2)

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

Fannie Mae GeMS Issuance in the Second Quarter of 2012

FNA 2012-M5, Priced on May 15, 2012

Class	CUSIP	Original FACE	Weighted Average Life (Years)	Coupon	Coupon Type	Spread	Offered Price
A1	3136A6HZ0	$93,100,000	5.51	1.787	Fixed Rate	S+37	101.00
A2	3136A6JA3	$569,880,000	9.64	2.715	Fixed Rate	S+70	101.00
AB1	3136A6JB1	$12,700,000	5.51	1.625	Fixed Rate	S+45	99.75
AB2	3136A6JC9	$77,709,201	9.64	2.667	Fixed Rate	S+80	99.75
X	3136A6JD7	$753,389,201	9.06	N/A	Interest Only	Not Offered	Not Offered
Total		$753,389,201

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

Fannie Mae GEMS Megas Issued in the Second Quarter of 2012

Pool Number	CUSIP	Original UPB	Weighted Average Maturity at Issuance (Months)	Trade date
FN0027	3138NJA57	$10,711,874	139	3/30/2012
FN0028	3138NJA65	$2,555,262	151	5/23/2012
FN0030	3138NJA81	$265,357,000	118	4/11/2012
FN0031	3138NJA99	$162,646,247	118	4/24/2012
Total		$438,270,383

(1) Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio resecuritization transactions and conversions of adjustable-rate loans to fixed-rate loans and DMBS securities to MBS securities.

(2) Includes Fannie Mae GeMS sold.

Certain statements in this release are forward-looking statements, including statements about our expected issuances in the future. Actual outcomes may differ materially from what is indicated by these statements as a result of many factors, including market demand, macroeconomic and housing market conditions, interest rates, GSE reform, and other factors described under "Risk Factors" in our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"). 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 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.

References in this release to dollar amounts and securities issued and/or outstanding refer to unpaid principal balances and do not reflect market valuation or other accounting adjustments.

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