Fannie Prices DUS REMIC with Grouped Collateral Structure


Fannie Mae has priced its third multifamily DUS REMIC of the year, a $767 million deal that is notable in that it is the first ever to have separate tranches backed by both seven-year and 10-year collateral.

Kimberly Johnson, vice president of multifamily capital markets, told this publication that the innovation among other things allowed the company to offer an AB tranche for each collateral group.

AB tranches, which have been particularly popular lately, carry a full Fannie Mae guarantee and are structured to absorb prepayments.

Agency commercial mortgage-backed securities in general have remained well bid in the secondary market and there has been heightened demand for both seven- and 10-year paper, Johnson said in a press release about the pricing.

Morgan Stanley was lead manager for the deal, FNA 2012-M3, and co-managers were Citigroup and J.P. Morgan. It has a March 30 settlement date.

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