Investor appetite for mortgage securities backed by multifamily loans insured by Fannie Mae appears healthy with the agency pricing its first 2012 multifamily DUS real estate mortgage investment conduit at $763 million. Fannie's DUS REMIC is a multi-class commercial mortgage-backed security that structures interest and principal payments into separately traded securities. A DUS lender, or delegated underwriting and servicing mortgage firm, can originate loans without prior Fannie Mae approval. Fannie said "a wide spectrum of investors" rushed in to place orders in the structured vehicle, which is designated as FNA 2012-M1. All of the classes within the vehicle are guaranteed by Fannie Mae, which agrees to insure interest and principal payments in the case of default. "Even as analysts are forecasting continued volatility in the broader CMBS space, there is clearly a strong appetite for agency CMBS," said Kimberly Johnson, vice president of multifamily capital markets. There are six different classes in the deal, with the A1 through AB classes offered for approximately $100 and with a fixed-rate coupon type. The FA class has a floating interest rate and a $100 offering price, while the SA and X classes are inverse interest-only and interest only, respectively. Write to Kerri Panchuk.