WASHINGTON, DC - Fannie Mae (OTC Bulletin Board: FNMA) sold four separate Multifamily Mega securities totaling $538 million under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on Thursday, March 24, 2011. Billing and delivery for these four Fannie Mae GeMS deals was conducted by Citigroup.
Source: Fannie Mae
Fannie Mae creates MBS supported by multifamily residential property mortgages. A pool of one or more multifamily mortgages - which can be either fixed-rate or adjustable-rate (ARM) - backs a multifamily MBS. Fannie Mae's Guaranteed MBS Pass-through Securities (Fannie Mae GeMS) program includes DUS REMICs and syndicated DUS Megas. Syndicated Mega deals are managed by broker-dealers and offered in issuance sizes similar to DUS REMIC transactions. These transactions use one or more pools of multifamily mortgage loans, which may be cross-collateralized and cross-defaulted as the collateral for securities. The securities may consist of fixed-rate MBS, adjustable rate MBS, and/or DMBS.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.