Fannie Mae Supports the Multifamily Market with Robust Issuance in the Second Quarter of 2012

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Fannie Mae recently announced that the company issued approximately $6.7 billion of multifamily MBS in the second quarter of 2012, backed by new multifamily loans delivered by our lenders.

Washington, D.C.—Fannie Mae recently announced that the company issued approximately $6.7 billion of multifamily MBS in the second quarter of 2012, backed by new multifamily loans delivered by our lenders. Year-to-date issuance is $13.8 billion. Fannie Mae also resecuritized $1.2 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the second quarter.

The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and 10 years. Fannie Mae’s GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae’s multifamily REMICs (ACES) and multifamily Mega securities.

Highlights of Fannie Mae’s multifamily activity in the second quarter of 2012 include the following:

  1. Multifamily MBS backed by new multifamily acquisitions—New multifamily MBS business volumes in the second quarter of 2012 totaled approximately $6.7 billion.
  2. Fannie Mae GeMS Issuance—Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $1.2 billion in the second quarter of 2012. This includes a $753.4 million Fannie Mae GeMS REMIC and $438.3 million in four Fannie Mae GeMS Megas. Dealers issued three multifamily REMICs backed by $1.6 billion of DUS MBS in the second quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.
  3. Fannie Mae Sales—Fannie Mae Capital Markets sold approximately $1.6 billion of multifamily mortgage securities from its portfolio in the second quarter of 2012.

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