There were a lot of rumors going on in the market about Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)‘s decision to announce the pricing of multifamily DUS REMIC. Some had doubts about its credentials while others didn’t know the actual price of this offering. Eventually, Fanni Mae has cleared its stand. As per the reports, the company has priced its Multifamily DUS REMIC, which is worth $1.06 billion. The offering was made available to public under company’s reputed program Fannie Mae Guaranteed Multifamily Structures.
The management of Fanni Mae seems excited about this announcement and hoped that it will enhance the trust of customers as well as credibility of the company. According to Josh Seiff, Vice President-Trading & Capital Markets, Fanni Mae, the market condition is strong and supportive now, which is good from company’s perspective. The bid for high quality and short duration paper is very strong in the market. The only CRE lending program of the company comes with a complete risk retention program and is quite effective at aligning lenders with investors. The core execution of this concept has been done on the current Multifamily DUS REMIC program of the company.
As per the reports, all the classes of the ongoing FNA 2015-M4 program hardly carry any payment risk. In order to win investors’ trust, Fanni Mae has decided to guarantee the program and assured the investors that they will get their principal and interest payments on time, month on month basis.
FNA 2015-M4 program of the company offers different types of coupons such as floater, WAC Cap, Fixed, AFC, etc. The primary objective of offering multiple coupons is to add flexibility to the program so that customers can exercise the available options as per their requirements and preferences. Fanni Mae looks forward to coming up with such offers in the future as well.