Fannie Mae Prices Fourth Multifamily Connecticut Avenue Securities Deal
Fannie Mae (OTCQB: FNMA) has priced its fourth Multifamily Connecticut Avenue Securities® (MCAS™) transaction, MCAS Series 2024-01, a $250 million note offering. The reference pool consists of 147 multifamily mortgage loans with an outstanding unpaid principal balance of approximately $8.6 billion. This transaction complements Fannie Mae's existing risk-sharing programs, including the Delegated Underwriting and Servicing (DUS®) and Multifamily Credit Insurance Risk Transfer (MCIRT™) programs.
The offering includes three classes of notes: M-7 ($93.232 million), M-10 ($120.653 million), and B-1 ($35.647 million). Fannie Mae will retain at least 5% of the underlying credit risk and the full B-2H first-loss tranche. The MCAS program is designed to share credit risk on Fannie Mae's multifamily conventional guaranty book of business and supports its capital management strategy.
Fannie Mae (OTCQB: FNMA) ha prezzato la sua quarta transazione di Multifamily Connecticut Avenue Securities® (MCAS™), la serie MCAS 2024-01, un'offerta di 250 milioni di dollari in note. Il pool di riferimento è composto da 147 prestiti ipotecari multifamiliari con un saldo principale non pagato di circa 8,6 miliardi di dollari. Questa transazione integra i programmi di condivisione del rischio esistenti di Fannie Mae, tra cui il Delegated Underwriting and Servicing (DUS®) e il Multifamily Credit Insurance Risk Transfer (MCIRT™).
L'offerta include tre classi di note: M-7 (93,232 milioni di dollari), M-10 (120,653 milioni di dollari) e B-1 (35,647 milioni di dollari). Fannie Mae manterrà almeno il 5% del rischio di credito sottostante e l'intera tranche B-2H di prima perdita. Il programma MCAS è progettato per condividere il rischio di credito sul portafoglio di garanzie convenzionali multifamiliari di Fannie Mae e supporta la sua strategia di gestione del capitale.
Fannie Mae (OTCQB: FNMA) ha establecido el precio de su cuarta transacción de Multifamily Connecticut Avenue Securities® (MCAS™), la serie MCAS 2024-01, una oferta de notas por 250 millones de dólares. El grupo de referencia consiste en 147 préstamos hipotecarios multifamiliares con un saldo principal no pagado de aproximadamente 8.6 mil millones de dólares. Esta transacción complementa los programas de compartición de riesgos existentes de Fannie Mae, incluyendo el Delegated Underwriting and Servicing (DUS®) y el Multifamily Credit Insurance Risk Transfer (MCIRT™).
La oferta incluye tres clases de notas: M-7 (93,232 millones de dólares), M-10 (120,653 millones de dólares) y B-1 (35,647 millones de dólares). Fannie Mae retendrá al menos el 5% del riesgo de crédito subyacente y toda la tranche de primera pérdida B-2H. El programa MCAS está diseñado para compartir el riesgo de crédito sobre el libro de garantías convencionales multifamiliares de Fannie Mae y apoya su estrategia de gestión de capital.
팬니메이(Fannie Mae) (OTCQB: FNMA)가 네 번째 Multifamily Connecticut Avenue Securities® (MCAS™) 거래, MCAS 시리즈 2024-01의 가격을 책정했습니다. 이는 2억 5천만 달러의 노트 제공입니다. 기준 풀은 약 86억 달러의 미지급 원금 잔액을 가진 147개의 다가구 주택 담보 대출로 구성됩니다. 이 거래는 팬니메이의 기존 리스크 공유 프로그램, 즉 Delegated Underwriting and Servicing (DUS®) 및 Multifamily Credit Insurance Risk Transfer (MCIRT™) 프로그램을 보완합니다.
이번 제공에는 세 가지 노트 클래스가 포함됩니다: M-7 (9323.2만 달러), M-10 (1억 2065.3만 달러), B-1 (3564.7만 달러). 팬니메이는 최소 5%의 기초 신용 리스크와 전체 B-2H 최초 손실 트랜치를 보유하게 됩니다. MCAS 프로그램은 팬니메이의 다가구 일반 보증 사업의 신용 리스크를 공유하도록 설계되었으며 자본 관리 전략을 지원합니다.
Fannie Mae (OTCQB: FNMA) a fixé le prix de sa quatrième transaction de Multifamily Connecticut Avenue Securities® (MCAS™), la série MCAS 2024-01, une offre de billets de 250 millions de dollars. Le pool de référence est composé de 147 prêts hypothécaires multifamiliaux avec un solde de principal impayé d'environ 8,6 milliards de dollars. Cette transaction complète les programmes de partage des risques existants de Fannie Mae, y compris le Delegated Underwriting and Servicing (DUS®) et le Multifamily Credit Insurance Risk Transfer (MCIRT™).
L'offre comprend trois classes de billets : M-7 (93,232 millions de dollars), M-10 (120,653 millions de dollars) et B-1 (35,647 millions de dollars). Fannie Mae conservera au moins 5 % du risque de crédit sous-jacent et l'intégralité de la tranche de première perte B-2H. Le programme MCAS est conçu pour partager le risque de crédit sur le portefeuille de garanties conventionnelles multifamiliales de Fannie Mae et soutient sa stratégie de gestion de capital.
Fannie Mae (OTCQB: FNMA) hat seine vierte Multifamily Connecticut Avenue Securities® (MCAS™) Transaktion, MCAS Serie 2024-01, zu einem Angebot von 250 Millionen Dollar in Anleihen festgelegt. Der Referenzpool besteht aus 147 multifamily Hypothekendarlehen mit einem ausstehenden unbezahlten Kapitalbetrag von etwa 8,6 Milliarden Dollar. Diese Transaktion ergänzt die bestehenden Risikoteilungsprogramme von Fannie Mae, einschließlich des Delegated Underwriting and Servicing (DUS®) und des Multifamily Credit Insurance Risk Transfer (MCIRT™) Programms.
Das Angebot umfasst drei Klassen von Anleihen: M-7 (93,232 Millionen Dollar), M-10 (120,653 Millionen Dollar) und B-1 (35,647 Millionen Dollar). Fannie Mae wird mindestens 5% des zugrunde liegenden Kreditrisikos und die gesamte B-2H Erstrisikotranch halten. Das MCAS-Programm wurde entwickelt, um das Kreditrisiko im konventionellen Garantieportfolio von Fannie Mae für Mehrfamilienhäuser zu teilen und unterstützt seine Kapitalmanagementstrategie.
- Successful pricing of $250 million MCAS transaction
- Strong demand across all note classes
- Retention of 5% underlying credit risk, demonstrating confidence in the portfolio
- Complements existing risk-sharing programs (DUS and MCIRT)
- Supports Fannie Mae's capital management strategy
- None.
"We were pleased with demand across all classes of our fourth MCAS transaction," said Dan Dresser, Senior Vice President, Multifamily Capital Markets and Pricing, Fannie Mae. "We appreciate the participation of our CRT investors and are committed to the MCAS program as a sustainable tool to support our capital management strategy."
The reference pool for MCAS Series 2024-01 consists of 147 multifamily mortgage loans with an outstanding unpaid principal balance of approximately
The loans included in this transaction are fixed-rate multifamily mortgages with terms less than or equal to 10 years and with unpaid principal balances greater than
Fannie Mae will retain at least five percent of the underlying credit risk, corresponding to a vertical slice of each of the reference tranches, and will retain the full B-2H first-loss tranche.
Class | Offered Amount ($MM) | Pricing Level | Initial Credit Support (%)1 |
M-7 | 30-day average SOFR plus 275 bps | 3.500 | |
M-10 | 30-day average SOFR plus 385 bps | 1.300 | |
B-1 | 30-day average SOFR plus 675 bps | 0.650 |
1Based on an allocable portion of |
Nomura Securities International Inc. is the lead structuring manager and bookrunner and Wells Fargo Securities, LLC. is the non-structuring lead manager. BofA Securities, Inc., Mizuho Securities
To support our credit risk transfer capabilities, we publish the Multifamily Loan Performance Data on Data Dynamics®, which presents loan-level credit performance data on more than 20 years of Fannie Mae multifamily production. This data promotes better understanding of the credit performance of our book of business and gives market participants information to further analyze our loan performance history.
For 35 years, Fannie Mae has successfully shared credit risk with our lender partners through the DUS program, which requires our DUS lenders to retain a portion of credit risk on multifamily loans they deliver to us. In addition to our MCAS program, Fannie Mae continues to transfer mortgage credit risk through its MCIRT reinsurance program.
About Multifamily Connecticut Avenue Securities
MCAS notes are issued by a bankruptcy-remote trust. The amount of periodic principal and ultimate principal paid by Fannie Mae is determined by the performance of a large and diverse reference pool. For more information on individual MCAS transactions, visit our credit risk transfer webpage.
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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Statements in this release regarding the company's future MCAS transactions are forward-looking. Actual results may be materially different as a result of market conditions or other factors listed in "Risk Factors" or "Forward-Looking Statements" in the company's annual report on Form 10-K for the year ended December 31, 2023. This release does not constitute an offer or sale of any security. Before investing in any Fannie Mae issued security, potential investors should review the disclosure for such security and consult their own investment advisors.
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FAQ
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