WASHINGTON, DC-Fannie Mae has priced its second Multifamily DUS REMIC for the year, an offering that totals $1.23 billion.

In most ways this is a standard offering under the GSE's Guaranteed Multifamily Structures program, but some nuances were also introduced, Josh Seiff, Fannie Mae Vice President of Multifamily Capital Markets, tells GlobeSt.com.

This particular M2 deal is structured with three groups of collateral to appeal to investor demand at the two-year, seven-year and 10-year points on the curve—with a heavy emphasis on two-year collateral.

"We frequently offer seasoned and new issue collateral and 10-year collateral is part of every deal," Seiff says. "But in this offering our two-year seasoned collateral was shorter than anything we ever offered before," he says. "That was by design, in response to investor demand."

In last month's offering, investors snapped up short, seasoned DUS paper, Seiff explains.

There was very strong investor participation in the current deal, he adds. "This deal was also more broadly distributed than others we have seen recently and a little bit larger than our average transaction, but nothing out of the ordinary."

The settlement date is Feb. 28, 2014.

Instant Insights /

Fannie Mae Adds 2-Year Collateral in $1.23B MF REMIC

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