WASHINGTON, DC—Fannie Mae has priced its tenth Multifamily DUS REMIC this year for a total of $1.32 billion. This particular securitization stands out because it is the second time the GSE used a product that allowed it to provide competitive floating-rate funding to multifamily borrowers.
Called ARM 7-6, the product is very flexible and can be used by borrowers of all sizes.
This securitization was well received by investors, according to Josh Seiff, Fannie Mae VP of Multifamily Capital Markets.
In general, and across all asset types, borrowers are becoming more interested in floating-rate loans as the Federal Reserve prepares to raise rates. For that same reason, investor demand is rising for this paper as well.
In May Fannie Mae priced its fifth Multifamily DUS REMIC for the year, totaling $1.24 billion. The deal was based on both floating rate and fixed-rate paper, due to investor demand for both types of securities. In particular, there was huge demand for short floaters that month, Seiff said at the time.
Freddi Mac also introduced a floating-rate seniors offering this year.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
