Fannie Mae Prices Its First Green Multifamily DUS REMIC (FNA …

“The Fannie Mae Multifamily Platform continues to chart new territory with the market’s first REMIC deal backed entirely by multifamily Green MBS,” said Lisa Bozzelli, Director, Multifamily Capital Markets and Pricing. “As the book of tradable Green DUS MBS surpasses the $14 billion mark, we are excited to be able to provide an investment opportunity for those GeMS investors who value both a socially responsible investment opportunity and appreciate the high credit quality of DUS collateral.”

Fannie Mae’s Multifamily Green Financing Business provides financing through several different green product offerings, encouraging apartment building owners to make energy and water savings improvements to their properties. In addition, the Fannie Mae Green Financing Business provides financing to properties holding a third-party, Fannie Mae-approved, Green Building Certification. Fannie Mae introduced the Green MBS product to the market in 2012 and has grown the book of business each year, culminating in the issuance of over $10 billion in the first half of 2017.

“Fannie Mae continues to innovate in the area of Green Financing, and the M10 transaction is one more example. Green Financing provides tangible financial benefits to property owners while also benefitting the environment,” said Chrissa Pagitsas, Director, Multifamily Green Financing Business. “Not only that, but properties that follow green building principles are often healthier environments for the tenants who live in them. It’s another great example of ‘doing well by doing good.'”

All classes of FNA 2017-M10 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 are in the table below:

Class

Original Face

Weighted
Average
Life

Coupon (%)

Coupon
Type

Spread

Offered
Price

AV1

$36,000,000

4.29

2.646

WAC

[S+27]

101.8

AV2

$837,048,171

6.66

2.646

WAC

[S+45]

100.5

Total

$873,048,171

Collateral

UPB:

$873,048,171

Collateral:

20 Fannie Mae DUS MBS

Geographic Distribution:

CT (29.4%), CA (29.8%), MA (15.5%)

Weighted Average

Debt Service Coverage Ratio (DSCR):

1.79x

Weighted Average

Loan-to-Value (LTV):

60.8%

Settlement Date:

August 30, 2017

Lead Manager:

Citigroup

Co-Managers:

Amherst Pierpont Securities                  

Credit Suisse

The Williams Capital Group, L.P.

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2017-M10) available on the Fannie Mae GeMS Archive page on www.fanniemae.com. Additional information on Fannie Mae’s Green Financing Business can be found on www.fanniemaegreenfinancing.com.

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.

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 fanniemae.com and follow us on twitter.com/fanniemae.

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SOURCE Fannie Mae

Related Links

http://www.fanniemae.com


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