Fannie Prices Multifamily DUS REMIC

Fannie Mae on Thursday priced its third multifamily DUS REMIC for 2013, a $904.3 million deal that is the first of its kind to include 10-year pools with seven years of yield maintenance.

“We saw strong investor demand for these classes due to the yield pick-up they offer,” said Kimberly Johnson, Fannie Mae senior vice president of multifamily capital markets, in a press release about the pricing of the deal, FNA 2013-M4. (Please see related graphic provided by Fannie for pricing details.)

Two groups of collateral back the Fannie Mae-guaranteed real estate mortgage investment conduit.

Group one has an unpaid principal balance of about $582.3 million and is backed by 97 seasoned delegated underwriting and servicing mortgage-backed securities. This pool’s largest geographic concentrations are in California (16.1%), Maryland (14.9%) and Virginia (9%). It has a weighted average debt service coverage ratio of 1.64x and a weighted average loan-to-value ratio of 68.22%.

Group two has an UPB of roughly $321.9 million and is backed by 38 Fannie Mae 10/7 DUS MBS. Geographic concentrations are in Texas (26.9%), California (25.6%) and Colorado (17.6%). The weighted average DSCR is 1.46x and the weighted average LTV is 75.18%.

The settlement date for the transaction is March 28. The lead manager for the transaction is Credit Suisse, and the co-managers are Barclays and Goldman Sachs.