Fannie Mae (OTC Bulletin Board: FNMA) priced its ninth Multifamily DUS® REMIC in 2018 totaling $797.2 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on October 10, 2018.
"The M13 was our eighth GeMS offering with tranches backed by Green MBS from our Green Financing business," said Dan Dresser, Vice President, Multifamily Capital Markets, Trading & Credit Pricing. "This was our first Green GeMS backed by 12-year, fixed-rate collateral—increasing the diversity of our structured offerings for socially responsible investors and demonstrating the flexibility of the DUS program."
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 $27 billion in 2017.
"Fannie Mae is committed to helping reduce the environmental impact of existing multifamily housing stock in the U.S.," said Chrissa Pagitsas, Director, Multifamily Green Financing Business. "The 50 Green MBS behind the A1 and A2 tranches in the M13 are from our Green Rewards program; the borrowers of those loans commit to making energy or water efficiency improvements to their buildings, reducing their operating costs, the utility costs for their tenants, and ultimately their apartment's greenhouse gas emissions."
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.comand follow us ontwitter.com/fanniemae.
