Fannie Mae Priced $879 Million Multifamily DUS REMIC (FNA 2021-M11) Under Its GeMS Program

Rhea-AI Summary

On April 14, 2021, Fannie Mae priced an $879 million Multifamily DUS^® REMIC under the Fannie Mae GeMS™ program, marking its fifth issuance of 2021. The deal follows a $21.5 billion issuance in Q1 2021. Notably, spreads tightened by approximately 30 basis points from pre-COVID levels, indicating stronger investor interest. The collateral pool features properties from 20 states with solid credit quality, evidenced by a weighted average debt-service coverage ratio of 2.27 and an LTV of 58%. All classes of the REMIC are guaranteed by Fannie Mae.

Positive

• Successful pricing of $879 million Multifamily DUS REMIC indicates strong market demand.
• Tightening of spreads by approximately 30 basis points from pre-COVID levels reflects positive market conditions.
• Solid credit quality demonstrated by a weighted average debt-service coverage ratio of 2.27.
• Diverse collateral pool with properties from 20 states enhances investment appeal.

Negative

• None.

WASHINGTON, April 19, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced an $879 million Multifamily DUS^® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on April 14, 2021. FNA 2021-M11 marks the fifth Fannie Mae GeMS issuance of 2021.

"We started the second quarter with an $879 million 10-year fixed-rate GeMS deal, building on the $21.5 billion in DUS issuance in Q1 2021," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "This first quarter saw spreads continue to grind tighter despite the solid volumes; multifamily borrowers have benefitted from approximately a 30-basis-point tightening of spreads from pre-COVID levels, and investors continue to enjoy the strong underwriting of the DUS program. The M11, for example, offered investors a collateral pool with properties from 20 states, all while maintaining solid credit quality with a weighted average debt-service coverage ratio of 2.27 and LTV of 58 percent."

All classes of FNA 2021-M11 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	$41,250,000	6.10	1.270	Fixed	S+8	100
A2	$637,288,684	9.85	1.459	WAC	S+17	97.11
A3	$200,000,000	9.90	1.305	Fixed	Not Available	Not Available
X	$41,250,000	6.08	0.189	WAC IO	Not Offered	Not Offered
X3	$200,000,000	9.40	0.154	WAC IO	Not Offered	Not Offered
Total	$878,538,684

 

Group 1 Collateral
UPB:	$878,538,684
Collateral:	54 Fannie Mae DUS MBS
Geographic Distribution:	NY (22.58%), NJ (11.21%), CO (10.7%)
Weighted Average Debt Service Coverage Ratio (DSCR):	2.27x
Weighted Average Loan-to-Value (LTV):	58.02%

 

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M11) available on the Fannie Mae GeMS Archive page.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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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 recent Fannie Mae REMIC issuance amount?

Fannie Mae recently priced a $879 million Multifamily DUS REMIC under its GeMS program.

What was the issuance date of the Fannie Mae REMIC?

The Fannie Mae REMIC was priced on April 14, 2021.

How much did Fannie Mae issue in DUS in Q1 2021?

Fannie Mae reported a $21.5 billion issuance in DUS for the first quarter of 2021.

What is the weighted average debt-service coverage ratio for the REMIC?

The weighted average debt-service coverage ratio for the REMIC is 2.27.

What is the loan-to-value ratio for the Fannie Mae REMIC?

The loan-to-value ratio for the Fannie Mae REMIC is 58%.