Company Announcements

Fannie Mae Priced $879 Million Green Multifamily DUS REMIC (FNA 2021-M2G) Under Its GeMS Program

WASHINGTON, June 17, 2021 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) priced an $879 million Green Multifamily DUS® REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on June 16, 2021. FNA 2021-M2G marks the seventh Fannie Mae GeMS issuance of 2021.

"The M2G was our second GeMS deal of the year that is backed by our Green MBS collateral, and the first since 2017 backed entirely by collateral holding a Fannie Mae-recognized Green Building Certification," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "We were pleased with the demand given the lower yield environment, current spread levels, and the availability of competing green bond investment opportunities."

In the second decade of its Multifamily Green Financing business, Fannie Mae remains committed to generating positive environmental and social impact through our two Multifamily Green products types: our Green Building Certification (GBC) program and Green Rewards, our energy- and water consumption-reduction program. Combined, we have issued more than $95 billion of Multifamily MBS backed by these financing products. Through the Fannie Mae GeMS program, we have re-securitized an additional $12.6 billion in REMICs backed by Green MBS.

"Through our GeMS program, we are able to provide the same level of rigor and environmental impact to investors as our DUS MBS with increased geographic diversity and in block sizes across the yield curve," said Lisa Bozzelli, Senior Director, Multifamily Capital Markets. "The M2G pricing corresponds with the issuance of Fannie Mae's2020 Green Bond Impact Report, which provides impact metrics across the Fannie Mae multifamily and single-family MBS portfolio and on a CUSIP level."

The FNA 2021-M2G marks the third GeMS of the year issued under Fannie Mae's recently published Sustainable Bond Framework, which covers Fannie Mae's issuance of sustainable, social, and green bonds and incorporates Fannie Mae's Multifamily Green Bond Framework. The Fannie Mae Green MBS program has received a "light green" second-party opinion (SPO) from CICERO. The Sustainable Bond Framework, Green Bond Framework, CICERO's SPO, issuance tracking, and other resources can be found on Fannie Mae's new Sustainable Bonds website, launched to provide investors a single site for Multifamily and Single-Family green and social bonds.

All classes of FNA 2021-M2G 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

$65,100,000

6.65

1.198

Fixed

S+7

99.9946

A2

$613,925,853

9.51

1.37556

WAC

S+12

98.6502

A3

$200,000,000

9.68

Not offered

Fixed

Not Offered

Not Offered

X

$65,100,000


.178

WAC IO

Not Offered

Not Offered

X3

$200,000,000


.166

WAC IO

Not Offered

Not Offered

Total

$879,025,853






 

Group 1 Collateral




UPB:                                                                                       

$879,025,853

Collateral:                                                                               

32 Green Fannie Mae DUS MBS

Geographic Distribution:                                                         

CA (29.3%), GA (11.9%), UT (10.7%)

Weighted Average Debt Service Coverage Ratio (DSCR):         

1.85

Weighted Average Loan-to-Value (LTV):                                  

66%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2021-M2G) available on the Fannie Mae GeMS Archive page.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission ("SEC") available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

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SOURCE Fannie Mae