Fannie Mae Prices $930 Million Multifamily DUS REMIC (FNA 2020-M42) Under Its GeMS Program

Rhea-AI Summary

On September 15, 2020, Fannie Mae (FNMA) successfully priced its eighth Multifamily DUS REMIC of the year, totaling $930.3 million. This offering, known as FNA 2020-M42, is backed by DUS 10/9.5 collateral and has gained substantial demand in a competitive market. The offering includes multiple classes, with the largest being A2 at $619.3 million and a coupon of 1.27%. All classes are guaranteed for timely interest and principal payments, indicating strong backing from Fannie Mae.

Positive

• Successful pricing of $930.3 million Multifamily DUS REMIC enhances liquidity.
• Strong demand for M42, showcasing investor confidence.
• All classes guaranteed by Fannie Mae for timely payments.

Negative

• None.

WASHINGTON, Sept. 17, 2020 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced its eighth Multifamily DUS^® REMIC in 2020 totaling $930.3 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on September 15, 2020.

"We were pleased to be able to wrap up the quarter with the M42 and offer the market a positively convexed option backed by DUS 10/9.5 collateral," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "In a month full of competing issuances, the M42 was able to find demand for duration and price at spreads not seen in over six years."

All classes of FNA 2020-M42 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	$111,000,000	5.86	0.785	Fixed	S+30	100.50
A2	$619,284,372	9.76	1.270	Fixed	S+39	101.89
A3	$200,000,000	9.82	1.244	Fixed	S+35	102.00
X	$730,284,372	8.74	0.301	WAC IO	Not Offered	Not Offered
X3	$200,000,000	9.32	0.253	WAC IO	Not Offered	Not Offered
Total	$930,284,372

 

Group 1 Collateral
UPB:	$930,284,372
Collateral:	148 Fannie Mae DUS MBS
Geographic Distribution:	NY (13.8%), WA (11.6%), CA (11.1%)
Weighted Average Debt Service Coverage Ratio (DSCR):	2.17x
Weighted Average Loan-to-Value (LTV):	59.1%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M42) 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 Americans. 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:
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https://www.fanniemae.com/news

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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 pricing?

Fannie Mae priced its recent Multifamily DUS REMIC at $930.3 million.

When was the FNA 2020-M42 REMIC priced?

The FNA 2020-M42 REMIC was priced on September 15, 2020.

What is the significance of Fannie Mae's DUS 10/9.5 collateral?

The DUS 10/9.5 collateral offers a positively convexed option, beneficial for risk management.

What are the key classes in the Fannie Mae REMIC offering?

The key classes include A1, A2, A3, X, and X3, with A2 being the largest at $619.3 million.

What does the guarantee by Fannie Mae imply for investors?

The guarantee signifies that Fannie Mae commits to the full and timely payment of interest and principal.