Fannie Mae Priced $736 Million Multifamily DUS REMIC (FNA 2022-M8) Under Its GeMS Program

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) successfully priced a $736 million Multifamily DUS^® REMIC, known as FNA 2022-M8, under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on April 11, 2022. This issuance is the fourth of 2022, showcasing a mix of traditional and floating-rate classes aimed at catering to smaller borrowers. The offering includes a notable 7-year SOFR-based floater with a 6% cap, expanding market participation. All classes are backed by Fannie Mae, ensuring timely interest and principal payments.

Positive

• Successful pricing of $736 million Multifamily DUS REMIC.
• Inclusion of a 7-year, SOFR-based floater to attract smaller borrowers.
• Strong investor interest despite competition in the market.

Negative

• None.

WASHINGTON, April 18, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $736 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on April 11, 2022. FNA 2022-M8 marks the fourth Fannie Mae GeMS issuance of 2022.

"With the M8, we were able to include a small group of our ARM 7-6 collateral, which is a 7-year, SOFR-based floater with a 6% cap on the pass-through rate," said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. "This product enables smaller borrowers who may not want to manage their own interest rate cap to participate in the popular floating-rate market. The M8 had plenty of competition this week with the shortened holiday schedule, and we are grateful that our investors were able to focus on the floating-rate class as well as the traditional 10-year tranches."

All classes of FNA 2022-M8 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	$31,451,821	6.15	0.679	Floater/AFC	30-day SOFR avg + 52	100
FX	$31,451,821	0.40	0.291	WAC IO	Not Offered	Not Offered
A1	$14,500,000	5.96	1.937	WAC	S+38	94.70
A2	$514,650,510	9.57	1.937	WAC	S+79	88.74
A3	$176,000,000	9.61	1.900	Fixed	Not Available	Not Available
X3	$176,000,000	9.11	0.037	WAC IO	Not Offered	Not Offered
Total	$736,602,331

* The spread on FNA 2022-M8 was priced using the SOFR swap curve

Group 1 Collateral
UPB:	$31,451,821
Collateral:	7 Fannie Mae DUS MBS
Geographic Distribution:	TX (30.75%), GA (27.06%), AR (15.21%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.95x
Weighted Average Loan-to-Value (LTV):	63.71%
Group 2 Collateral
UPB:	$705,150,510
Collateral:	39 Fannie Mae DUS MBS
Geographic Distribution:	NY (50.56%), IL (8.78%), NJ (8.51%)
Weighted Average Debt Service Coverage Ratio (DSCR):	2.16x
Weighted Average Loan-to-Value (LTV):	60.58%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M8) 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 was the amount of Fannie Mae's recent REMIC issuance FNMA?

Fannie Mae priced a $736 million Multifamily DUS REMIC under the FNMA symbol.

When was the FNA 2022-M8 REMIC priced by Fannie Mae?

The FNA 2022-M8 REMIC was priced on April 11, 2022.

What type of collateral was included in the FNA 2022-M8 issuance?

The FNA 2022-M8 issuance included a mixture of traditional and floating-rate classes.

What is the significance of the 7-year SOFR-based floater in the FNA 2022-M8?

The 7-year SOFR-based floater allows smaller borrowers to participate in the floating-rate market.