Fannie Mae introduced of Fannie Mae Guaranteed Multifamily Structures or Fannie Mae GeMS.
This is an expanded multifamily MBS that will include DUS Megas, DUS REMICs and syndicated DUS Megas.
Syndicated Mega deals will be managed by broker-dealers and offered in issuance sizes similar to DUS REMIC offerings, Fannie Mae said in a press release.
This expansion adds to Fannie Mae's Delegated Underwriting & Servicing (DUS) REMIC issuances, offering added Fannie Mae GeMS products with similar features and liquidity. Fannie Mae's different multifamily MBS products offers a constant source of stable support for the U.S. rental housing market.
Fannie Mae GeMS securities expand the MBS products now existing within Fannie Mae's Multifamily DUS program.
The press release said that the agency revitalized its multifamily MBS program in 2009 by increasing issuance and using the company's portfolio to enhance liquidity for multifamily MBS products.
Aside from $16.4 billion of DUS MBS, Fannie Mae also issued $4.8 billion of DUS structured securities in 2010. There were two Floater/Inverse Interest-Only REMIC structures issued in 2010, which was a first for the agency's multifamily collateral. Other new structures are expected to join the roster of multifamily structured product offerings this year, the release said.
"Fannie Mae is a leading provider of capital and liquidity for affordable workforce rental housing, and our role is more important now than ever," said Kenneth Bacon, executive vice president, multifamily mortgage business. "When many financial institutions pulled out of the multifamily financing market during the financial crisis, we stayed and increased our participation to help keep credit flowing."