Fannie Mae issues $10.1 billion of multifamily MBS

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Fannie Mae announced today that the company issued $10.1 billion of multifamily MBS in the second quarter of 2016, primarily through its Delegated Underwriting and Servicing (DUS®) program.

Fannie Mae also resecuritized $2.9 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS) program.

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“We had a very strong first half, issuing more than $28 billion in multifamily securities and structured transactions,” said Josh Seiff, Vice President of Multifamily Capital Markets & Trading, Fannie Mae.

“Our lenders have direct access to the markets and the vast majority of our multifamily production is purchased by investors as MBS.  That daily trading creates transparency and opportunity for investors and great liquidity for lenders and borrowers.”

The company’s DUS MBS securities provide market participants with highly predictable cash flows and call protection in defined maturities ranging from 5 to 30 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 include consistent monthly issuance, block size transactions, collateral diversity, and pricing close to par.

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