Fannie Finds Strong Demand for DUS REMIC’s Floating-Rate Paper

Fannie Mae late Friday issued a report on the pricing of its seventh multifamily DUS REMIC in 2013 on July 15, noting that there was demand for floating-rate paper from the $583 million transaction issued under its Guaranteed Multifamily Structures program, which is slated to settle next week.

"Given the broader market uncertainty, we saw superior demand for floating-rate paper and structured a smaller, floating-rate deal off of seasoned, fixed-rate collateral. Investor interest in the floater was strong, and the tranche was more than two times oversubscribed,” said Josh Seiff, Fannie Mae director of multifamily capital markets, in a press release. “In addition, we sold the remaining three tranches to multiple investors through reverse inquiry.”

Settlement of the guaranteed deal, FNA 2013-M11, is expected to occur on July 30.

The deal is backed by 81 multifamily real estate mortgage investment conduit securities from Fannie’s delegated underwriting and servicing program. The top three geographic concentrations are California (32.2%), Maryland (12.6%) and Missouri (7%). The debt service coverage ratio is 1.67x, the loan-to-value ratio is 66.47% and Credit Suisse is the lead manager and sole bookrunner.