Fannie Mae Priced $781 Million Green Multifamily DUS REMIC (FNA 2022-M1G) Under Its GeMS Program

Rhea-AI Summary

Fannie Mae priced a $781 million Green Multifamily DUS^® REMIC on February 8, 2022, the second issuance of 2022 under its GeMS™ program. This issuance, FNA 2022-M1G, offers green investment opportunities backed by fixed-rate MBS collateral with an emphasis on environmental impact. The company has issued over $102 billion in Multifamily MBS through its green financing initiatives. All classes of this REMIC are guaranteed by Fannie Mae for timely interest and principal payments.

Positive

• Successful execution of a $781 million Green Multifamily DUS REMIC.
• Continued commitment to green financing, with over $102 billion issued in Multifamily MBS.
• The GeMS™ program supports cost-saving and energy-efficient improvements in housing.

Negative

• None.

WASHINGTON, Feb. 14, 2022 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced a $781 million Green Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on February 8, 2022. FNA 2022-M1G marks the second Fannie Mae GeMS issuance of 2022.

"In a week marked by rate volatility and widening spreads, we are pleased with the execution of the M1G," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "The M1G is backed by two groups of fixed-rate, green MBS collateral – 7-year and 10-year. Through this offering, we are able to provide investors with green investment opportunities across the yield curve."

Now in the second decade of its Multifamily Green Financing business, Fannie Mae remains committed to generating positive environmental and social impact through its two Multifamily Green products: the Green Building Certification (GBC) program and Green Rewards, an energy- and water consumption-reduction program. Combined, Fannie Mae has issued over $102 billion of Multifamily MBS backed by these financing products. Through the GeMS program, Fannie Mae has re-securitized into REMICs an additional $14 billion backed by Green MBS.

"The 2022-M1G marks our 19th GeMS issuance backed by Green MBS collateral and is the first issued since Fannie Mae reached the $100 billion Green MBS milestone at the end of 2020," said Lisa Bozzelli, Senior Director, Multifamily Capital Markets. "Through products like our Green Rewards Program, Fannie Mae continues to support the renovation of existing housing stock with energy- and water-efficiency improvements that aim to reduce both the impact of the buildings on the environment and provide cost savings for tenants and borrowers."

All classes of FNA 2022-M1G 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
APT	$263,420,425	6.63	1.512	WAC	S+50	96.07
A1	$38,692,000	5.98	1.531	WAC	S+31	97.51
A2	$478,657,084	9.11	1.531	WAC	S+62	93.40
Total	$780,769,509

* The spread on FNA 2022-M1G was priced using the SOFR swap curve

Group 1 Collateral
UPB:	$263,420,426
Collateral:	6 Fannie Mae Green DUS MBS
Geographic Distribution:	CA (31.08%), NV (28.89%), TX (26.95%)
Weighted Average Debt Service Coverage Ratio (DSCR):	2.25x
Weighted Average Loan-to-Value (LTV):	61.8%

 

Group 2 Collateral
UPB:	$517,349,085
Collateral:	28 Fannie Mae Green DUS MBS
Geographic Distribution:	CA (27.32%), TX (17.93%), AZ (13.78%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.83x
Weighted Average Loan-to-Value (LTV):	64.3%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M1G) 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 purpose of the Fannie Mae Green Multifamily DUS REMIC priced on February 8, 2022?

The purpose is to provide investors with green investment opportunities while supporting environmentally and socially impactful multifamily housing initiatives.

How much has Fannie Mae issued in Multifamily MBS through green financing?

Fannie Mae has issued over $102 billion in Multifamily MBS backed by green financing products.

What is the total amount priced for the FNA 2022-M1G REMIC?

The FNA 2022-M1G REMIC is priced at $781 million.

How many GeMS issuances has Fannie Mae completed since reaching $100 billion in Green MBS?

Fannie Mae has completed 19 GeMS issuances backed by Green MBS collateral since reaching the $100 billion milestone.