The issuance of securities backed by mortgage loans on multifamily properties guaranteed by Fannie Mae increased by over 30% between the first and second quarters of 2014.

Driven by new multifamily property acquisitions, the 2Q volume of Fannie's MBS issuance backed by new multifamily loans originated by Fannie-approved lenders totaled approximately $4.6 billion, up from $3.5 billion.

"We saw an increase in loan deliveries from our DUS lenders in 2Q and the activity for our securities was robust," Manny Menendez, Fannie's senior vice president of multifamily capital markets and pricing, said in a press release last week.

In addition, Fannie resecuritized $3.2 billion of DUS MBS through its Guaranteed Multifamily Structures program, also known as GeMS, slightly down from $3.3 billion in the previous quarter.

The flexibility of the program enabled Fannie to keep GeMS issuance consistent and "to meet the strong investor demand for floating-rate paper," explained Menendez.

Fannie's GeMS program consists of structured multifamily securities backed by collateral selected by Fannie Mae Capital Markets, according to the release.

During the quarter Fannie sold approximately $3.7 billion from its multifamily mortgage securities portfolio. Second-quarter's issuance was generated by three Fannie Mae GeMS REMIC transactions, and one multifamily REMIC backed by roughly $633 million in dealer-contributed DUS MBS.

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