Fannie Mae: Agency CMBS ‘Thriving’

Fannie Mae says its issuance of multifamily mortgage-backed securities (MBS) is on pace to exceed $20 billion by the end of the year.

The company, which booked $6.4 billion of new multifamily MBS in the third quarter, reports that it issued $16.7 billion in multifamily MBS in the first nine months of the year, surpassing total issuance for all of 2010.

Also through September, Fannie Mae resecuritized $4.1 billion of DUS MBS through its Guaranteed Multifamily Structures (Fannie Mae GeMS) program. The company expects this resecuritization issuance to top $6 billion by year end.

‘Given the volatile market environment, agency CMBS is thriving," says Kimberly Johnson, vice president of multifamily capital markets for Fannie Mae. "Fannie Mae's [third-quarter] total activity, including MBS issuance, GeMS issuance and portfolio sales, was the highest of any quarter this year. Over the past two years, we have seen a significant increase in securities available for trading."

Fannie Mae's multifamily MBS outstanding tops $90 billion, Johnson adds.
Issuance of Fannie Mae's structured multifamily securities created from its portfolio totaled $1.5 billion in the third quarter. Also during the quarter, Fannie Mae Capital Markets sold $2.5 billion of multifamily mortgage securities, including sales of GeMS.

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