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Fannie Mae Invests $11.8 Billion in the Nation's Rental Housing During First Half of 2005; Over 92 Percent of Units Financed Are Affordable
KOHLER, WI -- Fannie Mae (FNM/NYSE) today announced the company has participated in financing $11.8 billion in multifamily rental housing in the first half of 2005. Over 92 percent of the multifamily units financed by Fannie Mae in the first half of 2005 are affordable to families at or below the median income of their communities. Over 60 percent of all multifamily units financed by Fannie Mae were reserved for special affordable (low- and very-low income), and over 62 percent of all loans were made in underserved markets and areas.
"Fannie Mae faced many challenges during the first six months of 2005, but our focus on our mission of affordable housing has not waned. Through our multifamily lenders, and our partners, Multifamily has continued to provide the market with financing solutions for decent, affordable rental housing," said Richard Lawch, senior vice president of Fannie Mae Multifamily Lending and Investment. "As Fannie Mae works diligently to become a stronger company, Multifamily will emerge a stronger unit and be in an even better position to serve the affordable housing market, and our lenders."
Fannie Mae's multifamily financing solutions include debt financing through lender partners and investments in Low Income Housing Tax Credits (LIHTC) through syndication partners. Many Fannie Mae multifamily lenders are part of the DUSTM network. Highlights of mid-year 2005 production include:
Total DUS product: $7.2 billion, which may include some of the following:
Small Loans ($3 million or less): $3.2 billion;
Multifamily Affordable Housing (Rent-restricted for renters earning 60 percent or less of median income), including non-funded forward commitments: $1.1 billion;
Bond Credit Enhancement: $857 million;
LIHTC Equity Investments: $564 million;
Credit Facilities: $515 million;
Large Loans ($25 million or greater): $3.4 billion;
Seasoned Pools: $2.6 billion;
Extended Maturity Option: $2.5 billion;
Extended Rate Lock: $1.7 billion;
Seniors Housing: $430 million;
Manufactured Housing Communities: $251 million; and
Adjustable Rate Mortgages (ARMs) and Discount Mortgage-Backed Securities: $836 million.
DUS lenders delivered $8.5 billion of the total multifamily financing issued in the first half of 2005. An additional $779 million in debt financing was generated by MFlex® lenders, who typically finance small multifamily developments.
Earlier this year Fannie Mae announced an improvement to its ARM offering, called the "Structured ARM," that provides a very competitive short-term interest rate and a simple execution for single-asset transactions of at least $25 million and for multiple-asset transactions of at least $50 million. Structured ARMs may be indexed to 1- or 3-month LIBOR and are convertible to fixed-rate loans at any time after the first 3 months.
Fannie Mae and RCG Longview, a New York City-based real estate opportunity manager, also launched Fannie Mae's "DUS PlusTM" product, which allows DUS lenders the ability to offer additional mezzanine financing in conjunction with Fannie Mae fixed-rate DUS loans that are between $3 million and $25 million.
Fannie Mae's multifamily assets, comprised of multifamily mortgages purchased for cash, multifamily Mortgage-Backed Securities (MBS), investments in LIHTC, and other assets, now total over $123 billion.
For more information on Fannie Mae's multifamily lending activities, please log on to www.fanniemae.com.
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