The segment of the U.S. population aged 65 and older, representing nearly 40 million people, is expected to increase over the next few decades in large part due to the aging of the baby boomer generation who are reaching their mid-60’s and living longer, healthier lives. Many Americans within this growing segment live in single-family homes, while others are choosing seniors rental housing, which may include independent living, assisted living, memory (Alzheimer’s) care, or skilled nursing care facilities.
We play a key role in this housing sector and have since 1998. An important part of our mission is to provide a reliable source of liquidity, through the secondary mortgage market, that meets the full spectrum of the nation’s rental housing needs, including America’s senior population.
Financing for the seniors housing sector is highly specialized and combines aspects of traditional rental housing with the business of senior care. As with our conventional multifamily customers, today’s seniors housing borrowers require flexibility, certainty of execution, and competitive pricing. Our seniors housing team partners with a targeted group of lenders through our unique Delegated Underwriting and Servicing (DUS®) platform to provide customized financing solutions that meet the unique needs of the seniors housing industry.
Providing quality housing for America’s aging population is important and Fannie Mae continues to serve this housing market. Our success with our seniors rental housing program is based on our Multifamily Mortgage Business’ unique loss sharing business model and proven credit underwriting standards, and by partnering with lenders that are experts in the financing of seniors housing and experienced seniors housing owner/operators.
We have a solid book of seniors housing business, which totaled $14.2 billion as of June 30, 2011. We are a continuous source of liquidity, stability, and affordability for America’s rental housing market during all market conditions, including financing quality rental housing for seniors. Fannie Mae remains committed to the seniors housing industry and meeting the needs of multifamily lenders and borrowers, in every market, every day. Don’t just take our word for it; take a look at what our customers have to say. Click here.
Director, Borrower Strategy & Development
Multifamily Mortgage Business
October 25, 2011