Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) continued its gradual decline as it closed at the end of the last trading session with a minor loss of 0.44%. The volume of the day at 1.9 million was less than half of the daily average of 4.4 million, reflecting the absolute indifference of the traders for the moment. The intraday ranges have been very narrow in the last few days, indicating the collapse of volatility too. The sideways movement visible for the last few months may continue for a while and unless a firm breakout takes place, no clear directional move can be expected.
Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) has issued Multifamily MBS, whose total worth is around $7.3 billion. As per the reports, the issuance of these MBS has been done through DUS (Delegated Underwriting and Servicing) program.
Apart from this issue, the company has also resecuritized $1.9 billion of DUS MBS through its Fannie Mae GeMS or Guaranteed Multifamily Structures program in the same quarter.
Management Call
The senior management of the company is delighted to share this update with all the investors and hopes that Fannie Mae will continue to serve its investors in the same way.
According to Josh Seiff, VP- Multifamily Capital Markets & Trading, Fannie Mae, the market conditions in August and September were not very good. But despite jittery market conditions, investors bought new multifamily securities of over $9 billion. It was way more than what the management team had expected.
The instability in this type of market continues to rise, yet the historical data shows that Fannie Mae truly stands out of the crowd. It’s capable of offering products that can mitigate lenders and underwriting risk. The MBS range of Fannie Mae addresses the needs of investors and lenders and capable of giving them the confident that’s needed in such volatile market conditions.
These MBS securities mainly focus on two things – call protection and regular cash flow for different maturity durations ranging from five years to thirty years. These securities have been designed by Fannie Mae by keeping in mind the collateral. All the analysts involved in this procedure are highly experienced and best in their business. While selecting the securities, it makes sure that they are in the best interest of the investors.
Along with this update, Fannie Mae also made public the true sales data covering multifamily mortgage securities and announced that it sold securities worth over $6.7 billion during 3Q2015.
