Fannie Mae's Multifamily MBS Issuance Jumped 45 Percent in 2011

Fannie Mae GeMS™ Issuance Reached $6 billion Milestone in the Program's First Year

WASHINGTON, Jan. 24, 2012 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) today announced that the company issued $7.2 billion multifamily MBS(1) in the fourth quarter of 2011, the highest quarterly issuance since Fannie Mae began reinvigorating its multifamily MBS business in 2009.  Total new issuance for 2011 was $23.8 billion, up from $16.4 billion in 2010.  Fannie Mae also resecuritized $6.0 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program in 2011.

"Market activity in our multifamily securities is clearly gaining momentum.  Tradable float, the volume of securities available to investors, has increased significantly over the past few years.  Fannie Mae's multifamily MBS outstanding has grown to over$100 billion.  As volumes increase and liquidity rises, we expect market participants will focus on Agency multifamily securities in the coming year," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.

Fannie Mae is the market leader in financing U.S. multifamily mortgages and has traditionally been a leader in this market.  The company's DUS MBS securities provide market participants with easily-modeled cash flows and call protection in defined maturities of 5-, 7- and 10-years.  Fannie Mae's GeMS program consists of structured multifamily securities created from Fannie Mae's portfolio of mortgage securities.  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 2011 include the following:

1)  MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONSNew multifamily MBS business volumes in the fourth quarter of 2011 totaled $7.2 billion.  Total 2011 new issuance volumes reached $23.8 billion. 

2)  FANNIE MAE GeMS ISSUANCEIssuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $1.9 billion in the fourth quarter of 2011, including $1.8 billion in GeMS REMICs and $0.1 billion in GeMS Megas.  For full-year 2011, Fannie Mae issued $6.0 billion in GeMS securities, including $4.4 billion in GeMS REMICs and $1.6 billion in GeMS Megas.

3)  FANNIE MAE SALESFannie Mae Capital Markets sold $10.6 billion of multifamily mortgage securities in 2011, including $2.8 billion in the fourth quarter.(2)

For additional information about Fannie Mae's multifamily MBS products and issuance please refer to Basics of Multifamily MBSand our MBSenger Publication "Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program" on fanniemae.com.