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

News provided by

Apr 19, 2012, 10:12 ET

WASHINGTON, April 19, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.1 billion of multifamily MBS(1) in the first quarter of 2012, backed by new multifamily loans delivered by our lenders. Fannie Mae also resecuritized $2.6 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the first quarter.

"The strength of the Agency CMBS market is evidenced by robust volumes coincident with improving credit quality," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets. "Issuance in the first quarter of this year is up 44% over last year's first quarter, and outstanding Multifamily MBS is nearly $110 billion. Resecuritization activity is also increasing. We are on pace to exceed $10 billion in GeMS issuance this year."

"Fundamentals in the rental housing market remain strong. New construction is subdued and tight supply is supporting rent growth as vacancy rates continue to decline," said Jeff Hayward, Fannie Mae Senior Vice President and Head of Multifamily.

Fannie Mae is the market leader in financing U.S. multifamily mortgages. The company's DUS MBS securities provide market participants with easily-modeled 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 first quarter of 2012 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the first quarter of 2012 totaled $7.1 billion.

2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.6 billion in the first quarter of 2012, including $2.5 billion in Fannie Mae GeMS REMICs and $100 million in Fannie Mae GeMS Megas.

3) FANNIE MAE SALES
Fannie Mae Capital Markets sold $2.8 billion of multifamily mortgage securities from its portfolio in the first 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 First Quarter of 2012

FNA 2012-M3, Priced on March 14, 2012

Class	CUSIP	Original FACE	Weighted Average Life (Years)	Coupon	Coupon Type	Spread	Offered Price
1A1	3136A4M48	$70,282,951	5.56	2.098	Fixed Rate	S+40	101.00
1A2	3136A4M55	$342,043,694	9.77	3.044	Fixed Rate	S+63	101.00
1AB	3136A4M63	$56,226,361	9.05	2.911	Fixed Rate	S+73	99.88
X1	3136A4M71	$468,553,006	9.05	0.470	Interest Only	T+250	2.55
2A1	3136A4M89	$46,481,734	4.94	1.934	Fixed Rate	S+38	101.00
2A2	3136A4M97	$216,168,254	6.67	2.444	Fixed Rate	S+51	101.00
2AB	3136A4N21	$35,815,908	6.36	2.292	Fixed Rate	S+61	99.88
X2	3136A4N39	$298,465,896	6.36	0.726	Interest Only	T+240	3.39
Total		$767,018,902

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

FNA 2012-M2, Priced on February 15, 2012

Class	CUSIP	Original FACE	Weighted Average Life (Years)	Coupon	Coupon Type	Spread	Offered Price
A1	3136A4TW9	$151,800,000	5.51	1.846	Fixed Rate	S+45	101.00
A2	3136A4TX7	$707,699,966	9.80	2.784	Fixed Rate	S+65	101.00
AB	3136A4TY5	$117,204,000	9.04	2.632	Fixed Rate	S+77	99.75
X	3136A4TZ2	$976,703,966	9.04	0.646	Interest Only	T+315	6.19
Total		$976,703,966

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

FNA 2012-M1, Priced on January 13, 2012

Class	CUSIP	Original Face	Weighted Average Life (Years)	Coupon	Coupon Type	Spread	Offered Price
A1	3136A26L2	$80,670,000	5.42	1.811	Fixed Rate	S+48	100.50
A2	3136A27B3	$437,879,820	9.69	2.729	Fixed Rate	S+70	100.50
AB	3136A27C1	$70,700,000	9.02	n/a	Fixed Rate	Not offered	Not offered
FA	3136A27D9	$174,036,780	9.00	1mo L+65 7.0% Cap	Floating Rate	L+65	100.00
SA	3136A27E7	$174,036,780	9.00	n/a	Inverse Interest Only	Not offered	Not offered
X	3136A27F4	$763,286,600	9.02	n/a	Interest Only	Not offered	Not offered
Total		$763,286,600

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

Fannie Mae GEMS Megas Issued in the First Quarter of 2012

Pool Number	CUSIP	Original UPB	Weighted Average Maturity at Issuance (months)	Pricing Date
FN0026	3138NJA40	$89,449,335	82	1/10/2012
FN0029	3138NJA73	$11,875,105	162	2/22/2012
Total		$101,324,440

(1) Reflects unpaid principal balance of multifamily Fannie Mae MBS issued during the period. The number excludes Fannie Mae portfolio securitization 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