While quarterly issuance of multifamily mortgage-backed securities at the Federal National Mortgage Association slipped from the first-three months of this year, year-to-date activity has improved by more than a third from last year.
Second-quarter multifamily issuance at Fannie Mae totaled $6.7 billion, according to data released Friday.
Securitizations dropped off from $7.1 billion in volume during the first quarter.
Total first-half 2012 issuance of $13.8 billion increased from the first-half 2011, when the Washington, D.C.-based company securitized $10.3 billion in apartment loans.
Fannie said that it also re-securitized $1.2 billion in DUS MBS through its Fannie Mae Guaranteed Multifamily Structures during the second quarter, and dealers issued three multifamily REMICs backed by $1.6 billion of DUS MBS.
The secondary lender said it sold around $1.6 billion in multifamily mortgage securities from its portfolio during the latest three-month period.
“Increasing property values, solid operating incomes and a low interest rate environment are all creating tailwinds,” Fannie Mae Vice President of Multifamily Capital Markets Kimberly Johnson said in the report. “Issuance and resecuritization volumes remain elevated as the rental housing market continues its expansion and credit remains strong. Secondary market activity is also robust; there were seven Multifamily REMICS issued in the first half of the year.”
