WASHINGTON, DC-Fannie Mae keeps tweaking the structure of its multifamily DUS REMIC offering—to the delight of both investors and borrowers. In its latest REMIC--its seventh this year--Fannie Mae priced one totaling $700 million that was backed by floating rate collateral. This was a first for the GSE, Kimberly Johnson, Fannie Mae vice president of Multifamily Capital Markets, tells GlobeSt.com.
“It was a big deal for us to get this done,” she says. “We have been doing floating rate loans all along of course, but this is the first time we used them as collateral in this type of execution.”
The loans are based on collateral in California, Texas and Minneapolis. The debt service coverage ratio is approximately 1.81x and the LTV is, on average, 70.8%. The REMIC was structured with one floating rate tranche and one interest only tranche, Johnson says.
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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.
