Fannie Mae (FNMA/OTCQB) priced a $1 billion Multifamily DUS® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on January 19, 2022. FNA 2022-M1 marks the first Fannie Mae GeMS issuance of 2022.
“We are pleased to kick off 2022 with another milestone in the market’s transition away from LIBOR, with our first multifamily REMIC quoted using the spread to the Secured Overnight Financing Rate (SOFR) swap curve,” said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. “Market participants had begun socializing the use of the SOFR swap curve (“p-spread”) when quoting fixed-rate ACMBS trades in late 2021 and the transition of new-issue ACMBS to this benchmark is one more step in that journey. The M1, with its discount, 10-year fixed-rate collateral, found strong demand in the market with the A2 tranche pricing at a 52-basis-point spread to the SOFR swap curve, equating to a 26-basis-point spread to the LIBOR swap curve.”
All classes of FNA 2022-M1 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|
|A1||$64,600,000||6.47||1.669||WAC||S + 36||98.78|
|A2||$737,643,749||9.69||1.669||WAC||S + 52||96.13|
|A3||$200,000,000||9.74||1.580||Fixed||Not Offered||Not Offered|
|X3||$200,000,000||9.24||0.089||WAC IO||Not Offered||Not Offered|
*The spread on FNA 2022-M1 was priced using the SOFR swap curve
Group 1 Collateral
|Collateral||43 Fannie Mae DUS MBS|
|Geographic Distribution||TX (18.74%), UT (11.22%), FL (9.11%)|
Debt Service Coverage Ratio (DSCR)
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M1) available on the Fannie Mae GeMS Archive page.