Fannie Mae multifamily MBS issuance soars in 4Q
Fannie Mae multifamily mortgage-backed securities issuance grew in the fourth quarter, according to data released by the government-sponsored enterprise Friday.
The firm’s MBS issuance rose to $10.8 billion in 4Q12, backed by mew multifamily loans delivered by its lenders. Total issuance for 2012 was $33.1 billion, up from $23.8 billion a year earlier.
"Market activity for our securities was robust in 2012 with total issuance topping $33 billion," said Kimberly Johnson, Senior Vice President of Multifamily Capital Markets at Fannie Mae.
She added, "Issuance was particularly strong in the fourth quarter, in part due to the Fed’s aggressive bond-buying program, which has helped to keep borrowing costs at record lows. Private-sector lending has shown signs of growth as well, adding liquidity for all market participants."
The GSE also used its Fannie Mae Guaranteed Multifamily Structures, known as Fannie Mae GeMs, to re-securitize $2.2 billion of DUS MBS securities in the fourth quarter.
The GeMS program is made up of structured multifamily securities backed by collateral from Fannie Mae’s capital markets segment.
The firm’s capital markets segment also sold $1.9 billion of multifamily mortgage securities from its own portfolio in the fourth quarter.