News Column

Fannie Mae Multifamily MBS Issuance Increased Thirty Percent in the Second Quarter of 2014

August 5, 2014

WASHINGTON, Aug. 5 -- Fannie Mae issued the following corporate news release:

The pace of Fannie Mae (FNMA/OTC) multifamily MBS issuance jumped thirty percent in the second quarter of 2014, as the company issued approximately $4.6 billion1 of multifamily MBS backed by new multifamily loans delivered by its lenders. Fannie Mae also resecuritized $3.2 billion of DUS(R) MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMSTM) program in the second quarter of the year.

"We saw an increase in loan deliveries from our DUS lenders in Q2 and the activity for our securities was robust with total issuance increasing thirty percent from Q1," said Manny Menendez, Senior Vice President of Multifamily Capital Markets & Pricing, Fannie Mae. "GeMS issuance remained consistent, and the flexibility of the program allowed us to structure seasoned Fixed+1TM hybrid-rate collateral from our portfolio to meet the strong investor demand for floating-rate paper."

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 and multifamily Mega securities.

Highlights of Fannie Mae's multifamily activity in the second quarter of 2014 include the following:


New multifamily MBS business volumes in the second quarter of 2014 totaled approximately $4.6 billion.


Issuance of Fannie Mae's structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $3.2 billion in the second quarter of 2014. This issuance volume was generated over three Fannie Mae GeMS REMIC transactions. In addition, Fannie Mae issued one multifamily REMIC backed by $632.9 million of dealer-contributed DUS MBS in the second quarter of 2014, adding to the liquidity of Fannie Mae DUS MBS.


Fannie Mae Capital Markets sold approximately $3.7 billion of Fannie Mae multifamily mortgage securities from its portfolio in the second quarter of 2014.2

For additional information about Fannie Mae's multifamily MBS products and issuance please refer to the Multifamily MBS ( webpage and the MBSenger(R) Publication "Over Twenty Years of Multifamily Mortgage Financing Through Fannie Mae's DUS Program"( on

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Source: Targeted News Service

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