Fannie multifamily MBS issuance grew 45%
Fannie Mae issuance of securities backed by multifamily properties grew 45% in 2011, with the government-sponsored enterprise issuing $23.8 billion of MBS, up from $16.4 billion in 2010.
Fannie also re-securitized $6 billion of DUS MBS via the Fannie Mae multifamily structures program last year, which is known as Fannie Mae GeMS.
"Market activity in our multifamily securities is clearly gaining momentum," said Kimberly Johnson, Fannie's vice president of multifamily capital markets. "Tradable float, the volume of securities available to investors, has increased significantly over the past few years. Fannie Mae’s multifamily MBS outstanding has grown to over $100 billion. As volumes increase and liquidity rises, we expect market participants will focus on agency multifamily securities in the coming year."
In just the fourth quarter of 2011, new Fannie MBS business totaled $7.2 billion. Issuance of structured multifamily securities created from Fannie's own portfolio totaled $1.9 billion in 4Q. Meanwhile, for the entire 2011 fiscal year, Fannie issued $6 billion in GeMS securities. About $4.4 billion of those were in GeMS REMICs and $1.6 billion in GeMS megas.
During the year, Fannie Mae Capital Markets sold $10.6 billion of multifamily mortgage securities.
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