Fannie Mae Brings Liquidity to Multifamily Market

Fannie Mae Brings Liquidity to Multifamily Market

WASHINGTON, DC - Fannie Mae announced that in the first half of 2011, the company issued $10.3 billion in MBS backed by new multifamily acquisitions delivered by our lenders, and sold $5.3 billion in MBS pools and GeMS™ structured transactions, enhancing tradable float and supporting liquidity in the multifamily MBS market.  

"In today's economic environment, Fannie Mae continues to deliver liquidity to the multifamily housing market and provide investment options to market participants," said Kimberly Johnson, Fannie Mae Vice President for Multifamily Capital Markets.  "Through our multifamily MBS issuance (including DUS MBS, GeMS™ structured transactions and portfolio activities), Fannie Mae provided market participants with considerable volume and a variety of execution options in the first half of 2011."

Beginning in 2009, Fannie Mae made reinvigoration of its multifamily MBS business and broadening the investor base a top priority.  By ramping up its MBS execution and transforming the multifamily capital markets business, Fannie Mae has shifted from being primarily a multifamily portfolio market participant to one that provides liquidity to the multifamily market mainly through securitization.  

Fannie Mae provides the largest share of U.S. multifamily mortgage financing, and traditionally has been a leader in this market.  The company's DUS MBS securities provide market participants with investment securities offering easily-modeled cash flows, superior call protection and positive convexity in defined maturities of 5-, 7- and 10-years.  Fannie Mae's Guaranteed Multifamily Structures (Fannie Mae GeMS™) program consists of structured multifamily securities created from Fannie Mae's portfolio.  Fannie Mae GeMS™ offer market participants block size investments, collateral diversity and pricing close to par through its multifamily REMICs (ACES) and multifamily Mega securities.

Highlights of Fannie Mae's activity in the first half of 2011 include the following:


New multifamily MBS business volumes through June 30, 2011 totaled $10.3 billion.  


Issuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $2.6 billion, including $1.2 billion in GeMS™ ACES and $1.4 billion in GeMS™ Megas through June 30, 2011.


Fannie Mae's Capital Markets group has sold $5.3 billion of multifamily mortgage securities from its portfolio through June 30, 2011.

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

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.

Source: Fannie Mae

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