Fannie Mae (OTCQB: FNMA) priced a $783 million Multifamily DUS REMIC under its Fannie Mae Guaranteed Multifamily Structures program on November 10, 2020. FNA 2020-M52 marks the tenth Fannie Mae GeMS issuance of 2020.
"In a week marked by market uncertainty, rate volatility, and climbing COVID-19 numbers, we were pleased with the execution of the M52," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "This deal brought our total GeMS issuance for 2020 to $8.5 billion, which represents only a fraction of the entire FNA market this year as ACES issuance hit record levels. With one more month of issuance to go, the combined GeMS and ACES volumes have reached $26.3 billion over 50 deals. The program allows investors and broker dealers to structure REMICs with their own DUS collateral – a flexibility that has been particularly helpful to liquidity given the year's rate environment. As we head into December and prepare to close the books on 2020, we would like to express our appreciation for the support of our GeMS investor community and the broker dealer network."
All classes of FNA 2020-M52 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 can be found in the table below:
| Class | Original Face | Weighted Average Life | Coupon (%) | Coupon Type | Spread | Offered |
| Price | ||||||
| APT | $121,669,043 | 5.10 | 0.864 | Fixed | Not Offered | Not Offered |
| X1 | $121,669,043 | 4.98 | 2.472 | WAC IO | Not Offered | Not Offered |
| A1 | $85,100,000 | 5.77 | 0.878 | Fixed | S+29 | 100 |
| A2 | $501,596,201 | 9.76 | 1.319 | WAC | S+39 | 100.07 |
| A3 | $75,000,000 | 9.83 | 1.200 | Fixed | S+35 | 99.11 |
| X | $85,100,000 | 5.75 | 0.441 | WAC IO | Not Offered | Not Offered |
| X3 | $75,000,000 | 9.33 | 0.119 | WAC IO | Not Offered | Not Offered |
| Total | $783,365,244 |
| Group 1 Collateral | |
| UPB: | $3,150,550,015 |
| Collateral: | 4 REMIC Certificates (199 Fannie Mae DUS MBS) |
| Underlying REMIC Trust/Class 1: | FNA 2019-M1-A1 |
| Original Principal of Contributed Portion of Class: | $79,805,000 |
| Geographic Distribution: | CA (24.89%), GA (22.19%), FL (19.91%) |
| Underlying REMIC Trust/Class 2: | FNA 2018-M4-A1 |
| Original Principal of Contributed Portion of Class: | $30,500,000 |
| Geographic Distribution: | FL (27.37%), TX (11.77%), LA (8.89%) |
| Underlying REMIC Trust/Class 3: | FNA 2018-M14-A2 |
| Original Principal of Contributed Portion of Class: | $25,000,000 |
| Geographic Distribution: | CA (44.26%), FL (9.59%), MD (8.05%) |
| Underlying REMIC Trust/Class 4: | FNA 2018-M10-A1 |
| Original Principal of Contributed Portion of Class: | $1,600,000 |
| Geographic Distribution: | CA (27.94%), TX (9.14%), NC (9.01%) |
| Weighted Average Debt Service Coverage Ratio (DSCR): | 1.88x |
| Weighted Average Loan-to-Value (LTV): | 64.5% |
| Group 2 Collateral | |
| UPB: | $661,696,201 |
| Collateral: | 132 Fannie Mae DUS MBS |
| Geographic Distribution: | CA (29.6%), GA (11.0%), FL (9.07%) |
| Weighted Average Debt Service Coverage Ratio (DSCR): | 2.48x |
| Weighted Average Loan-to-Value (LTV): | 59.6% |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2020-M52) available on the Fannie Mae GeMS Archive page.
About Fannie Mae
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 | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
