Fannie Mae Priced $720 Million Multifamily DUS REMIC (FNA 2022-M10) Under Its GeMS Program

Rhea-AI Summary

On May 11, 2022, Fannie Mae (OTCQB: FNMA) priced a $720 million Multifamily DUS® REMIC called FNA 2022-M10, marking its fifth GeMS issuance of the year. The issuance offers 10-year cash flows with future prepayment premiums on underlying MBS. All classes are guaranteed by Fannie Mae for timely interest and principal payments. The weighted average debt service coverage ratio stands at 1.75x with a loan-to-value ratio of 66.7% for the collateral of $719.8 million. The deal reflects strong investor interest despite market rate volatility.

Positive

• Successful pricing of $720 million Multifamily DUS REMIC, indicating strong market demand.
• Offers attractive 10-year cash flows with potential future prepayment premiums.
• All classes guaranteed by Fannie Mae, providing security for investors.
• Weighted average debt service coverage ratio of 1.75x and loan-to-value ratio of 66.7%, showcasing sound financial metrics.

Negative

• None.

WASHINGTON, May 17, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $720 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on May 11, 2022. FNA 2022-M10 marks the fifth Fannie Mae GeMS issuance of 2022.

"The M10 provided an opportunity to buy discounted, 10-year cash flows with 100% of any future prepayment premiums on the underlying MBS," said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. "We are pleased that the investor community was able to focus on the deal given recent rate volatility and competing investment opportunities."  

All classes of FNA 2022-M10 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
A1	$42,100,000	6.71	2.003	WAC	S+42	92.71
A2	$677,674,679	9.56	2.003	WAC	S+79	87.01
Total	$719,774,679

* The spread on FNA 2022-M10 was priced using the SOFR swap curve

Group 1 Collateral

UPB:                                                                                              $719,774,679
Collateral:                                                                                     41 Fannie Mae DUS MBS
Geographic Distribution:                                                            TX (19.48%), IL (12.75%), NY (10.15%)
Weighted Average Debt Service Coverage Ratio (DSCR):       1.75x
Weighted Average Loan-to-Value (LTV):                                    66.7%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M10) 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 total amount of the Fannie Mae REMIC priced on May 11, 2022?

Fannie Mae priced a total of $720 million for the Multifamily DUS REMIC FNA 2022-M10.

What financial metrics were reported for the FNA 2022-M10?

The FNA 2022-M10 has a weighted average debt service coverage ratio of 1.75x and a loan-to-value ratio of 66.7%.

How many GeMS issuances has Fannie Mae completed in 2022 before FNA 2022-M10?

Fannie Mae completed four GeMS issuances prior to the FNA 2022-M10, making it the fifth issuance of 2022.

What guarantees does Fannie Mae provide for the classes within FNA 2022-M10?

All classes of FNA 2022-M10 are guaranteed by Fannie Mae for full and timely payment of interest and principal.

What was the geographic distribution of the collateral for FNA 2022-M10?

The collateral geographic distribution includes TX (19.48%), IL (12.75%), and NY (10.15%).