Fannie Mae, the leading source of residential mortgage credit in the U.S. secondary market, has announced that it provided $28.8 billion in financing to the multifamily market in 2013, working with lender partners to finance 507,000 units of multifamily housing.
Approximately 99 percent ($28.5 billion) of the loans that Fannie Mae financed in 2013 were delivered through mortgage-backed security (MBS) execution. Fannie Mae met the Federal Housing Finance Agency’s (FHFA) goal to reduce multifamily volumes by 10 percent relative to 2012 levels, achieving 95 percent of its total volume capacity.
“I am proud that Fannie Mae continued to serve the multifamily market in 2013 with $28.8 billion of new acquisitions,” said Jeffery Hayward, senior vice president and head of the 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.”
For 26 years, Fannie Mae has relied on its Delegated Underwriting and Servicing (DUS) program to play a significant role in the multifamily housing market. The DUS program relies on shared risk with lenders and provides certainty and speed of execution, delegated underwriting and servicing, competitive pricing and strong credit risk management. DUS lenders delivered 99 percent of Fannie Mae’s 2013 multifamily loan acquisitions.
“Thanks to our 24 DUS lenders, 2013 was another terrific year for multifamily production,” said 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 following are the top 10 DUS lenders that produced the highest volume in 2013, as well as the top 5 DUS lenders that produced the highest volume in the “multifamily affordable housing” and “seniors housing” categories in 2013, listed in descending order:
Top 10 DUS producers in 2013:
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 Company
7. M&T Realty Capital Corporation
8. PNC Real Estate
9. Arbor Commercial Funding LLC
10. Berkeley Point Capital LLC
Top 5 DUS producers for multifamily affordable housing in 2013:
- Wells Fargo Multifamily Capital
- Oak Grove Capital
- Greystone Servicing Corporation Inc.
- Walker & Dunlop LLC
- TIE: Citibank, N.A. and PNC Real Estate
Top 5 DUS Producers for seniors housing in 2013:
- KeyBank National Association
- Oak Grove Capital
- CBRE Multifamily Capital Inc.
- Berkadia Commercial Mortgage LLC
- Red Mortgage Capital LLC
Production highlights for individual business categories, which are part of the overall total 2013 multifamily investment number are as follows:
- Multifamily affordable housing (financing for rent-restricted properties and properties receiving other federal and state subsidies) – $2.3 billion, a decrease from 2012’s $3.8 billion;
- Small loans (loans of up to $3 million, or $5 million in high-cost areas) – $2.3 billion, down from $3.0 billion in 2012;
- Large loans (loans $25 million or higher) – $10.4 billion, down from $11.6 billion in 2012;
- Manufactured housing communities – $1.0 billion, an increase from $912 million in 2012;
- Student housing – $454 million, a decrease from $712 million in 2012;
- Structured transactions – $1.9 billion, a slight increase from 2012’s $1.8 billion; and
- Seniors housing – $1.6 billion, up from 2012’s $1.2 billion.