WASHINGTON, DC—Earlier this week we reported that Freddie Mac’s multifamily originations have been low, comparatively speaking, for 2014 but that the agency’s Mitchell Resnick believed that they would start to increase as the year went on.
Fannie Mae is reporting its own issuance figures that support this view.
The GSE reported a 30% quarter over quarter increase in MBS issuance in the second quarter of 2014, with approximately $4.6 billion. It also resecuritized $3.2 billion of DUS MBS through three Fannie Mae GeMS REMIC transactions this quarter.
In addition to these REMICs, Fannie Mae issued one multifamily REMIC backed by $632.9 million of dealer-contributed DUS MBS in the second quarter of 2014.
That said, “it is clear that issuance has been down this year,” Manny Menendez, SVP of Multifamily Capital Markets and Pricing, tells GlobeSt.com. Issuance on a year over year basis for Q2 2014 was down, he notes. But the quarter over quarter increase for Q2 augurs well for the rest of the year.
Right now, “we are seeing very good demand in the market for these securities,” he says.