WASHINGTON, D.C. — Fannie Mae has provided $28.8 billion in financing to the multifamily market in 2013. The agency worked with its lender partners to finance 507,000 units of multifamily housing, and approximately 99 percent ($28.5 billion) of the loans were delivered through MBS execution.
Fannie Mae met the Federal Housing Finance Agency's goal to reduce multifamily volumes by 10 percent relative to 2012 levels, according to Fannie Mae.
“I am proud that Fannie Mae continued to serve the multifamily market in 2013 with $28.8 billion of new acquisitions,” says Jeffery Hayward, senior vice president and head of multifamily mortgage business at Fannie Mae. “The need for quality, affordable rental housing is greater today than it's ever been, and we will continue to do our part by providing liquidity, stability and affordability to the multifamily market and maintaining our credit standards. Over 85 percent of the multifamily units we financed in 2013 were affordable to families earning at or below the median income in their area.”
The Delegated Underwriting and Servicing (DUS) lenders delivered 99 percent of Fannie Mae's 2013 multifamily loan acquisitions. The DUS program relies on shared risk with lenders, or “skin in the game,” and provides certainty and speed of execution, delegated underwriting and servicing, competitive pricing and strong credit risk management.
“Thanks to our 24 DUS lenders, 2013 was another terrific year for multifamily production,” says Hilary Provinse, vice president for multifamily customer engagement at Fannie Mae. “As the competitive landscape heats up in 2014, we will rely on the strength of our delegated model and the flexibility of our single loan MBS to help our lenders achieve their production goals as we continue to build a solid book of business.”
The top 10 DUS lenders that produced the highest volume in 2013 are as follows:
1. Walker & Dunlop LLC
2. Wells Fargo Multifamily Capital
3. CBRE Multifamily Capital Inc.
4. Beech Street Capital LLC
5. Berkadia Commercial Mortgage LLC
6. Prudential Mortgage Capital Co.
7. M&T Realty Capital Corp.
8. PNC Real Estate
9. Arbor Commercial Funding LLC
10. Berkeley Point Capital LLC
The top five DUS producers formultifamily affordable housing in 2013 are as follows:
1. Wells Fargo Multifamily Capital
2. Oak Grove Capital
3. Greystone Servicing Corp. Inc.
4. Walker & Dunlop LLC
5. TIE: Citibank N.A. and PNC Real Estate
The top five DUS producers for seniors housing in 2013 are as follows:
1. KeyBank National Association
2. Oak Grove Capital
3. CBRE Multifamily Capital Inc.
4. Berkadia Commercial Mortgage LLC
5. Red Mortgage Capital, LLC
Individual Business Categories
Of the $28.8 billion financed in 2013, Fannie Mae and its lenders financed approximately $2.3 billion for multifamily affordable housing, a decrease from $3.8 billion financed in 2012. Multifamily affordable housing is defined as rent-restricted properties and properties receiving other federal and state subsidies.
Fannie Mae financed $2.3 billion in small loans, which are loans of up to $3 million (or $5 million in high-cost areas), in 2013. Fannie Mae financed $3 billion in small loans in 2012.
The agency financed $10.4 billion in large loans, which are loans totaling $25 million or higher. The large loan production dipped from its $11.6 billion total in 2012.
Fannie Mae also financed $1 billion for manufactured housing communities, $454 million in student housing properties and $1.6 billion in seniors housing properties.
— staff reports