Fannie Mae Priced $509.1 Million Multifamily DUS REMIC (FNA 2024-M4) Under Its GeMS Program

By klrw460 April 18, 2024

Fannie Mae (FNMA/OTCQB) successfully priced a new $509.1 million Multifamily DUS® REMIC through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS™) program on April 9, 2024. The transaction, designated FNA 2024-M4, is the second issuance under the GeMS program this year.

Dan Dresser, Senior Vice President of Multifamily Capital Markets, Pricing, and Analytics at Fannie Mae, expressed enthusiasm about the transaction, stating, “We are thrilled to price our second GeMS issuance of 2024 successfully. Despite ongoing market challenges like rate volatility, the deal was executed swiftly and efficiently, attracting strong investor interest. We value the continued support from our investors.”

The FNA 2024-M4 issuance is backed by Fannie Mae’s guarantee for the punctual and complete payment of interest and principal. The offering consists of multiple tranches, as detailed in the summary below:

  • Class A1 has an original face of $25,096,202, with a 6.16-year weighted average life and a fixed coupon of 4.791%.
  • Class A2, totaling $357,000,000, features a 9.44-year average life and a fixed coupon of 4.871%, priced over the SOFR swap curve at P+89 with an offered price of 100.00.
  • Class A3 has $127,000,000 in original face, a 9.57-year average life, and a fixed coupon of 4.40%.
  • The interest-only tranches X1, X2, and X3 are not offered.

The aggregate original face amount of all classes totals $509,096,202. The deal is supported by 76 Fannie Mae DUS MBS as collateral, predominantly from Texas, Florida, and Illinois, with a weighted average debt service coverage ratio of 1.42x and a loan-to-value ratio of 58.8%.

For more information, read the original press release from: