Most of the companies related to finance and manufacturing field are on the lookout of expanding, and the biggest name among all of them is Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA). As per the reports, it has decided to price its second consecutive Multifamily DUS REMIC in 2015. The total price of FNMA’s offerings is $1.15 billion.
Insights On The Matter:
The Multifamily DUS REMIC has been made available to all the investors under Fannie Mae GeMS program (Fannie Mae Guaranteed Multifamily Structures). It is one of the brave decisions that FNMA’s board has taken lately and has been backed by the management team. According to Josh Seiff, Vice President of Capital Markets and Trading, Federal National Mortgage, is going to be a hit product in the market. The previously announced M3 did extremely well in the market, and the fact that supported it was its multifamily feature.
Due to the inbuilt multifamily feature, Federal National Mortgage can easily share the risk, with all its DUS lenders throughout the tenure of their loans. It’s been over 25 years since the company first launched this model, and fortunately it has worked well. The continuous good performance of the M3 model has established it as the largest and the most preferred Agency multifamily securitization platform of the world.
The preferences of investors have changed nowadays. They want to have good experience and risk retention over everything else. The changed behavior of the investors was the key behind the successful launch of this DUS REMIC. There were multiple new issuances in the market when Federal National Mortgage’s new product hit the market, but still it managed to attract more than three dozen investors.
It has appointed Goldman Sachs & Co. as the lead manager of the deal while Wells Fargo and Deutsche Bank have been appointed as the co-managers.