Fannie Mae has priced a $392 million Multifamily Social DUS REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program. FNA 2022-M2S marks the eighth Fannie Mae GeMS issuance of 2022.
“Despite the challenging market conditions, the benchmark 10-year fixed-rate collateral with its 9.5 years of yield maintenance call protection continues to attract investors,” says Dan Dresser, senior vice president of multifamily capital markets and pricing at Fannie Mae. “In addition, the structuring of an A3 tranche in the M2S offered a more call-protected option for those investors requiring a more predictable maturity window.”
The M2S issuance aligns with Fannie Mae’s Sustainable Bond Framework, which governs Fannie Mae’s commitment to adhering to international standards in its issuance of green, social and sustainable bonds. In 2020, Fannie Mae received a second party opinion on its Sustainable Bond Framework from independent third-party Sustainalytics. The framework builds on Fannie Mae’s 32-year history of supporting multifamily affordable housing, 10-year history of multifamily green financing, and its expansion into single-family green MBS issuance in 2020.
“As with our previous social GeMS offerings, the collateral backing the M2S reflects the social criteria in our Sustainable Bond Framework, in support of affordable housing,” states Lisa Bozzelli, senior director of multifamily capital markets at Fannie Mae. “In addition to affordable housing with restrictive affordability covenants and manufactured housing communities, the M2S includes several conventional multifamily properties whose affordability is naturally occurring with 80 percent of the units affordable to households earning 60% of the area median income at acquisition.”
All classes of FNA 2022-M2S are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal.