Fannie Mae Priced $802 Million Multifamily DUS REMIC (FNA 2021-M17) Under Its GeMS Program

Rhea-AI Summary

Fannie Mae (OTCQB: FNMA) priced a $802 million Multifamily DUS REMIC under its Fannie Mae Guaranteed Multifamily Structures program on July 21, 2021. This marks the eighth issuance in 2021. Dan Dresser, Senior VP, noted strong market interest despite rate volatility. The offering includes multiple classes, with A1 class having an original face of $66 million and a coupon of 1.141%, while A2 class totals $576 million with a coupon of 1.714%. The weighted average debt service coverage ratio stands at 1.96x.

Positive

• Successful pricing of a $802 million Multifamily DUS REMIC, indicating strong market demand.
• Execution achieved at attractive levels despite market volatility.
• Diverse multi-tranche offering enhances investor appeal.

Negative

• None.

WASHINGTON, July 22, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced an $802 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on July 21, 2021. FNA 2021-M17 marks the eighth Fannie Mae GeMS issuance of 2021.

"We were grateful that market participants were able to focus on our July GeMS deal, the M17, given the rate volatility this week," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "Despite mid-summer holidays, recent rate volatility, and spread softening, we were able to execute the M17 at attractive levels. After a long period of one-way spread and yield movement, this week's volatility provided an opportunity for investors and demonstrated the consistent demand for well-diversified, block-sized deals."

All classes of FNA 2021-M17 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	$66,000,000	6.51	1.141	Fixed	S+14	100
A2	$576,125,117	9.79	1.714	Fixed/AFC	S+22	102
A3	$160,000,000	9.96	1.44	Fixed	Not Available	Not Available
X	$642,125,117	9.00	0.176	WAC IO	Not Offered	Not Offered
X3	$160,000,000	9.46	0.392	WAC IO	Not Offered	Not Offered
Total	$802,125,117

 

Group 1 Collateral
UPB:	$802,125,118
Collateral:	65 Fannie Mae DUS MBS
Geographic Distribution:	TX (27.77%), CA (16.83%), OH (12.68%)
Weighted Average Debt Service Coverage Ratio (DSCR):	1.96x
Weighted Average Loan-to-Value (LTV):	63.35%

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M17) available on the Fannie Mae GeMS Archive page.

About Fannie Mae
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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 Multifamily DUS REMIC issued by Fannie Mae on July 21, 2021?

Fannie Mae issued a total of $802 million in Multifamily DUS REMIC.

What classes are included in Fannie Mae's FNA 2021-M17 issuance?

The FNA 2021-M17 issuance includes multiple classes such as A1, A2, A3, X, and X3.

What was the weighted average debt service coverage ratio for Fannie Mae's recent REMIC offering?

The weighted average debt service coverage ratio for the offering was 1.96x.

How does the coupon rate for Class A1 of Fannie Mae's REMIC offering compare to Class A2?

Class A1 has a coupon rate of 1.141%, while Class A2 has a coupon rate of 1.714%.