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Fannie Mae's Affordable Housing REMIC | Columbia Pike Project Gets Construction Loan

WASHINGTON, DC-This is the GSE's first 2016 deal that features the seven-year floating rate MBS with a 4% interest rate cap, which is only offered for workforce housing.

By Erika Morphy | erikamorphy | | Updated on July 18, 2016
4707 Columbia Pike 4707 Columbia Pike

WASHINGTON, DC-Fannie Mae has priced its seventh Multifamily DUS REMIC this year for a total of $913.6 million. The deal is noteworthy as it is the GSE’s first to feature a 7/4 ARM — that is, a seven-year floating rate mortgage-backed security with a 4% interest rate cap. This is a product that is offered exclusively for affordable and workforce housing, according to Josh Seiff, Fannie Mae’s Vice President of Capital Markets and Trading. “That group was really the highlight of the deal, and it was oversubscribed immediately on being announced,” he said.

The 7/4 ARM program, which is for the refinancing or acquisition of stable, affordable housing projects,  is indeed a favorite of affordable housing owners. With the embedded interest rate cap, it is considered one of the easiest variable rate program as there are no external caps or swaps to be purchased. Loans under this program qualify

Pillars Development Group Secures Construction Loan for Columbia Pike Project

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