Fannie Mae Priced $210 Million Multifamily DUS REMIC (FNA 2021-M18) Under Its GeMS Program

Rhea-AI Summary

Fannie Mae priced a $210 million Multifamily DUS^® REMIC under its GeMS program on September 10, 2021. This issuance is the ninth GeMS issuance of the year. Dan Dresser highlighted that this re-securitization of the Hybrid ARM product offers long-term financing for small building owners, enhancing their options beyond traditional fixed-rate loans. All classes of the new REMIC are guaranteed by Fannie Mae for timely interest and principal payments, with a total offering amount of $210,319,000.

Positive

• Successful pricing of a $210 million Multifamily DUS REMIC under the GeMS program.
• Introduction of the re-securitization of the Hybrid ARM product, expanding financing options for small building owners.
• All classes of the offering are guaranteed by Fannie Mae, ensuring security for investors.

Negative

• None.

WASHINGTON, Sept. 14, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $210 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on September 10, 2021. FNA 2021-M18 marks the ninth Fannie Mae GeMS issuance of 2021.

"We kicked off the fall season with a first for us, the re-securitization of our Hybrid ARM product in the M18," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "This Hybrid ARM product provides long-term flexible financing for small building owners, and prepayment protection for investors during the fixed-rate period. Although the program is a smaller component of our Multifamily portfolio, it expands opportunity for smaller apartment building owners nationwide, providing them with alternatives to traditional, fixed-rate financing."

All classes of FNA 2021-M18 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 can be found in the table below:

Class	Original Face	Weighted Average Life	Coupon (%)	Coupon Type	Spread	Offered
						Price
H5	$57,217,063	3.36	0.942	FLT/AFC	S+15	100.50
X1	$57,217,063	7.67	2.453	WAC IO	Not Offered	Not Offered
H7	$56,746,133	5.00	1.279	FLT/AFC	S+25	100.50
X2	$56,746,133	8.02	1.618	WAC IO	Not Offered	Not Offered
H10	$96,355,804	6.39	1.626	FLT/AFC	S+45	100.49
X3	$96,355,804	8.08	1.133	WAC IO	Not Offered	Not Offered
Total	$210,319,000

 

Group 1 Collateral
UPB:	$57,217,063
Collateral:	30 Fannie Mae DUS MBS
Geographic Distribution:	CA (17.1%), WA (14.33%), CO (13.44%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.78x
Weighted Average Loan-to-Value (LTV):	65.6%
Group 2 Collateral
UPB:	$56,746,133
Collateral:	27 Fannie Mae DUS MBS
Geographic Distribution:	CA (36.73%), PA (13.62%), WV (12.26%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.93x
Weighted Average Loan-to-Value (LTV):	58.8%
Group 3 Collateral
UPB:	$96,355,805
Collateral:	51 Fannie Mae DUS MBS
Geographic Distribution:	CA (19.07%), IL (14.6%), MD (6.67%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.89x
Weighted Average Loan-to-Value (LTV):	64%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M18) available on the Fannie Mae GeMS Archive page.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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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

FAQ

What is the significance of Fannie Mae's $210 million Multifamily DUS REMIC issued on September 10, 2021?

It represents an important refinancing tool for small building owners and expands their financing options.

How does the Hybrid ARM product benefit small building owners?

It provides long-term flexible financing and prepayment protection during the fixed-rate period.

What guarantees are in place for the Fannie Mae Multifamily DUS REMIC classes?

All classes of the REMIC are guaranteed by Fannie Mae for the full and timely payment of interest and principal.

How many GeMS issuances has Fannie Mae completed in 2021?

Fannie Mae has completed nine GeMS issuances in 2021.