Fannie Mae’s first multifamily delegated underwriting and servicing real estate mortgage investment conduit deal backed by floating rate collateral attracted banks as well as other buyers.
“We thought that it was going to be a really good fit for banks given their depository base,” said Kim Johnson, Fannie Mae vice president of capital markets, adding that insurers, money managers and a local government fund also were buyers.
Johnson said the real estate mortgage investment conduit transaction, which priced late Monday, came in “right at the price talk” and was oversubscribed by 20%.
“We anticipate more floating rate deals to come,” she said.
The $700 million deal, FNA 2012-M11, was the seventh
The most recent deal has a geographic collateral distribution as follows: 23.7% in California, 21.2% in Texas and 9.9% in Minnesota. The weighted average loan-to-value ratio is 70.8%.
Morgan Stanley was the lead manager and sole book runner. The settlement date for the transaction is Sept. 28.
