Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) announced pricing of its fifth Multifamily DUS REMIC in 2015 worth $1.04 billion under its GeMS Program.
The Fannie Mae Guaranteed Multifamily Structures program is one of the most sought after programs in the country and features a lot of attractive products from time to time.
Management’s Call:
The senior management of the company is delighted to share this update with all the shareholders and customers of the company. According to Josh Seiff, Vice President of Capital Markets and Trading, Fannie Mae, two major concerns for the company are demand-supply gap and rate volatility.
Due to the uncertain market conditions and increased volatility, investors don’t want to risk their assets. Under such circumstances, FNA 2015-M8 comes out as the perfect option in the market. The investors have given an excellent initial response to FNA 2015-M8, which has enhanced the expectations significantly. Close to 30 investors took part in the deal — a clear evidence of relative value and strong credit quality that this deal can offer.
Fannie Mae has decided to guarantee all the different classes of FNA 2015-M8, which means that investors can be assured of the timely payment of the principal and interest amount.
There are two groups in this deal; the first group consists of a UPB of $332.214 million. The geographic distribution goes like this: CA-13.9%, NY-15.6%, PA-10.6%. Loan to Value in the first group is 61.1%. When it comes to Group 2 Collateral, the UPB totals $702.88 million. The geographic distribution in this group goes like- TX: 11.3%, MD:13.8%, and NY: 10.3%. Debt Service Coverage ratio in this group is 1.46x with a loan to value of 71.1%.
Lead Manager for this offering is Credit Suisse Securities while Co-Managers are Morgan Stanley, Jefferies and Great Pacific Securities. Fannie Mae looks forward to coming up with many such offerings in the near future.
