Fannie Mae's recently priced $577 million multifamily DUS REMIC highlights moves the agency is making to court an agency CMBS investor base that appears to be broadening as activity has subsided somewhat in the CMBS conduit market.
Over the last two months there has been a relative pickup in activity in these MF DUS REMIC deals, the latest being the sixth of its type and the first backed solely by seven-year collateral, said Kimberly Johnson, a vice president in capital markets and head of multifamily trading at Fannie Mae.
Seven-year collateral has been mixed in with 10-year multifamily mortgages in pools backing past DUS REMICs. But the recent deal is the first backed strictly by the seven-year loans, she said.
The relatively shorter-term weighted average life profile of the pool backing the most recent deal appeals to the broadening investor base for the securities, which extends beyond more traditional players like life insurers to include banks, credit unions and money managers, she said.
The Fannie guaranteed seven-year deal is backed by loans with yield maintenance prepayment premiums and is slated to settle Oct. 28. Credit Suisse is the lead manager and Citigroup is the co-manager.