The quarterly securitization of commercial real estate loans backed by apartment properties continued to accelerate at the Federal National Mortgage Association.
From April 1 through June 30, the Washington-based company reported that it issued $14.5 billion in multifamily mortgage-backed securities.
That was substantially better than in the first quarter of this year, when Fannie Mae MBS issuances amounted to $10.4 billion.
The latest activity brought full first-half volume to $24.9 billion.
The quarterly improvement was far more significant compared to the second-quarter 2014, when multifamily issuance at the secondary lender totaled just $4.6 billion.
Fannie noted in the report that its multifamily issuances were primarily completed through its Delegated Underwriting and Servicing program.
In addition to the MBS issuance, the government-controlled enterprise reported $3.0 billion in DUS re-securitizations through its
Guaranteed Multifamily Structures.
Another $1.6 billion in ACES REMICs and Non-GeMS Megas backed by DUS MBS collateral was generated from the broker-dealer community.
“Globally, there was a lot going on in Q2 — a lot for investors to track,” Fannie Mae Vice President of Multifamily Capital Markets & Trading Josh Seiff stated in the report. “Despite that turbulence, DUS spreads were pretty stable. Investors trust our risk sharing model — that demand translates into a consistent, reliable execution for multifamily borrowers.”
