A recent Fannie Mae multifamily DUS REMIC that had two additional types of tranches not normally included in past deals brought in a slightly higher percentage of new investors than usual.
Kimberly Johnson, vice president of multifamily capital markets for the GSE, told National Mortgage News that about 25% of the 26 investors in the $789 million deal had never before bought any delegated underwriting and servicing REMICs—or other types of resecuritizations—under Fannie’s Guaranteed Multifamily Structures program before.
Generally, she said, the percentage of new investors tends to be closer to 10%-15%. The number of investors was about average.
Johnson said the addition of the two tranches, which had weighted average lives of 3.51 years and 6.58 years, could have been what drew more new buyers than usual.
“We saw terrific investor demand in both the long tranches and the short tranches,” she said. The bonds were priced Thursday. “We were excited about the demand for the shorter-term maturities.”
Overall, Johnson said the deal got “really great execution” and she was pleased with the work done by Citigroup as lead manager. “We expect to do more in the future,” she said.
The deal, which is slated to settle July 30, is Fannie’s fifth multifamily real estate mortgage investment conduit deal of the year.
Two groups of DUS mortgage-backed securities collateral backed the resecuritization.