Fannie Mae has priced its second multifamily DUS REMIC in 2011 and in doing so employed a structure not previously used within its guaranteed multifamily structures program.
New to the program is a structure in which all unscheduled principal payments and associated prepayment premiums from the first three classes, all of which are fixed rate, are distributed first to the fourth-ranked AB class. The feature aims to add additional protection to the cash flow stability of A1, A2 and A3 classes in the deal.
In addition to the four fixed-rate sequential pay classes, the deal has a floating-rate class and two different types of interest-only classes. Neither IO class is being offered. Fannie Mae guarantees all the classes in the deal, which roughly totals $593.7 million in size, with respect to full and timely payment of interest and principal and yield maintenance prepayment premiums apply to all underlying loans.
The first two classes of bonds were priced at 100.5, the third at 100.375, the AB class was priced at 99.75 and the floating rate class was priced at 100.
