Fannie Mae Supports the Multifamily Market with Robust Q2 Results

By July 19, 2012No Comments

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

 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:


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


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.


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

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 OfferedPrice
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 NotOffered
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 AverageMaturity at Issuance


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 andhousing 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 and on the SEC’s Web site at

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


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