The leading financial player in U.S., Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA), has prices its fifth Multifamily DUS REMIC in the current year. As per the reports, the decision was taken a few days back under Fannie Mae GeMS or Fannie Mae Guaranteed Multifamily Structures program. The total price of Multifamily DUS REMIC goes up to $1.04 billion.
Management Is In Full Support:
The senior management of the company has come in the full support of this program. According to Josh Seiff, Vice President, Trading & Capital Markets, Fannie Mae, two primary concerns for the company at the time of taking this decision were supply and rate volatility. Even after so many difficulties, FNA 2015-M8 grabbed the attention of a range of investors. All in all, 30 investors took part in this deal and gave full support to make it a huge hit. The strong credit quality and various other advantages of this deal help the company getting a lot of customers on board.
As per the reports, Fannie Mae has guaranteed all the different classes of FNA 2015-M8 concerning timely payment of principal amount and the interest in full. It has formed two groups i.e. Group 1 Collateral and Group 2 Collateral. The UPB of the Group 1 is $3.32 billion with debt service coverage ratio is 1.52x. When it comes to Group 2 Collateral, the UPB is $7.02 billion with debt service coverage ratio of 1.46x.
The Group 1 comprises of a loan-to-value figure of 61.1% while Group 2 carries a loan-to-value figure of 71.1%. The settlement date as per the information made available by the company is May 29, 2015. In order to make sure a top-notch quality, Fannie Mae has appointed Credit Suisse Security as the Lead Manager and Morgan Stanley, Jefferies, and Great Pacific Securities as the Co-Managers for this transaction.
