Fannie Mae Priced $381 Million Multifamily Social DUS REMIC (FNA 2022-M1S) Under Its GeMS Program

Rhea-AI Summary

On July 6, 2022, Fannie Mae (OTCQB: FNMA) announced the pricing of a $381 million Multifamily Social DUS REMIC (FNA 2022-M1S), marking its sixth issuance under the GeMS program in 2022. The issuance aims to support affordable housing for low- to moderate-income households, benefiting over 2,680 units. This offering adheres to Fannie Mae's Sustainable Bond Framework, highlighting its commitment to socially responsible investments. All classes are guaranteed by Fannie Mae for timely payment of interest and principal.

Positive

• Raised $381 million through the FNA 2022-M1S issuance.
• Supports over 2,680 affordable housing units for low- to moderate-income households.
• Adheres to the Sustainable Bond Framework, enhancing Fannie Mae's commitment to social responsibility.

Negative

• None.

WASHINGTON, July 6, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $381 million Multifamily Social DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on June 23, 2022. FNA 2022-M1S marks the sixth Fannie Mae GeMS issuance of 2022.

"The M1S is our first social GeMS of 2022 and the third in GeMS history," said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. "We were thankful that investors were able to focus on the deal given the macro environment and rate volatility and appreciate the support to our affordable housing efforts."

The M1S issuance aligns with Fannie Mae's Sustainable Bond Framework, which governs Fannie Mae's commitment to adhering to international standards in its issuance of green, social, and sustainable bonds. In 2020, Fannie Mae received a second party opinion on its Sustainable Bond Framework from independent third-party Sustainalytics. The framework builds on Fannie Mae's 32-year history of supporting multifamily affordable housing, 10-year history of multifamily green financing, and its expansion into single-family green MBS issuance in 2020.

"The collateral backing the M1S reflects the social criteria in our Sustainable Bond Framework, in support of affordable housing," said Lisa Bozzelli, Senior Director, Multifamily Capital Markets, Fannie Mae. "Through these properties, we are able to support over 1,000 units affordable to households earning 50% of area median income (AMI), over 680 units affordable to households earning 60% of AMI and over 1,000 pads in affordable manufactured housing communities."

All classes of FNA 2022-M1S 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
FA	$33,825,000	6.10	1.179	Floater/AFC	30-day SOFR avg + 46	98.97 (62DM)
FX	$33,825,000	0.34	0.074	WAC IO	Not Offered	Not Offered
A1	$38,900,000	5.59	2.081	WAC	S+51	93.61
A2	$308,504,371	9.60	2.081	WAC	S+90	86.88
Total	$381,229,371

* The spread on FNA 2022-M1S was priced using the SOFR swap curve

Group 1 Collateral
UPB:	$33,825,000
Collateral:	6 Fannie Mae DUS MBS
Geographic Distribution:	TX (42%), MO (28.65%), MI (12.45%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.89x
Weighted Average Loan-to-Value (LTV):	74.5 %

 

Group 2 Collateral
UPB:	$347,404,371
Collateral:	22 Fannie Mae Social DUS MBS
Geographic Distribution:	NJ (31.15%), FL (21.99%), MN (9.48%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.52x
Weighted Average Loan-to-Value (LTV):	71.5 %

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M1S) available on the Fannie Mae GeMS Archive page.

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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https://www.fanniemae.com/newsroom

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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 the Fannie Mae FNA 2022-M1S issuance priced at $381 million?

The FNA 2022-M1S issuance allows Fannie Mae to support affordable housing for over 2,680 units, reflecting a commitment to social responsibility.

When was the Fannie Mae FNA 2022-M1S priced?

The Fannie Mae FNA 2022-M1S was priced on June 23, 2022, and announced on July 6, 2022.

How many units does the FNA 2022-M1S support for affordable housing?

The FNA 2022-M1S supports over 2,680 units of affordable housing for families earning 50% to 60% of the area median income.

What does the Fannie Mae's Sustainable Bond Framework entail?

The Sustainable Bond Framework governs Fannie Mae's commitment to socially responsible investments, ensuring compliance with international standards.

How are the classes of the FNA 2022-M1S secured?

All classes of the FNA 2022-M1S are guaranteed by Fannie Mae for the full and timely payment of interest and principal.