WASHINGTON, DC - Fannie Mae announced that the company issued approximately $6.7 billion of multifamily MBS in the second quarter of 2012, backed by new multifamily loans delivered by our lenders. Year-to-date issuance is $13.8 billion. Fannie Mae also resecuritized $1.2 billion of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program in the second quarter.
"Increasing property values, solid operating incomes, and a low interest rate environment are all creating tailwinds. Issuance and resecuritization volumes remain elevated as the rental housing market continues its expansion and credit remains strong. Secondary market activity is also robust – there were seven Multifamily REMICS issued in the first half of the year," said Kimberly Johnson, Fannie Mae Vice President of Multifamily Capital Markets.
The company's DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities of five, seven and ten years. Fannie Mae's GeMS program consists of structured multifamily securities created from collateral specifically selected by Fannie Mae Capital Markets. Features of Fannie Mae GeMS have included block size transactions, collateral diversity and pricing close to par through Fannie Mae's multifamily REMICs (ACES) and multifamily Mega securities.
Highlights of Fannie Mae's multifamily activity in the second quarter of 2012 include the following:
1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the second quarter of 2012 totaled approximately $6.7 billion.
2) FANNIE MAE GeMS ISSUANCE
Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $1.2 billion in the second quarter of 2012. This includes a $753.4 million Fannie Mae GeMS REMIC and $438.3 million in four Fannie Mae GeMS Megas. Dealers issued three multifamily REMICs backed by $1.6 billion of DUS MBS in the second quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $1.6 billion of multifamily mortgage securities from its portfolio in the second quarter of 2012.
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.