WASHINGTON, DC-Fannie Mae keepstweaking the structure of its multifamily DUSREMIC offering—to the delight of both investors andborrowers. In its latest REMIC--its seventh this year--Fannie Maepriced one totaling $700 million that was backedby floating rate collateral. This was a first for the GSE,Kimberly Johnson, Fannie Mae vice president ofMultifamily Capital Markets, tells GlobeSt.com.
“It was a big deal for us to get this done,” she says. “We havebeen doing floating rate loans all along of course, but this is thefirst time we used them as collateral in this type ofexecution.”
The loans are based on collateral in California, Texas andMinneapolis. The debt service coverage ratio is approximately 1.81xand the LTV is, on average, 70.8%. The REMIC was structured withone floating rate tranche and one interest only tranche, Johnsonsays.
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