February 07, 2011Fannie Mae and its Lenders Financed Approximately $17 Billion in 2010, Ensuring Reliable, Sustainable Liquidity to the Multifamily Rental Housing Market
WASHINGTON, DC - Fannie Mae (FNMA/OTC), the leading source of multifamily mortgage financing for workforce rental housing, today announced that in 2010 the company, in conjunction with its lender and housing partners, provided $16.9 billion in debt financing for the rental housing market, through approximately 2,300 multifamily mortgage loans for 306,000 rental units across the country.
Fannie Mae's Delegated Underwriting and Servicing (DUS®) lenders and affiliates delivered 97 percent or $16.4 billion of the company's 2010 financing in multifamily housing by utilizing the DUS® platform - the cornerstone of Fannie Mae's Multifamily business. The DUS platform relies on a concept of shared risk or "skin in the game" and provides competitive advantages to lenders including certainty and speed of execution, delegated underwriting and servicing, competitive pricing, and strong credit risk management.
The company's MBS execution, which offers investors Fannie Mae's guaranty of timely payment of principal and interest, accounted for 97 percent of total production compared to 81 percent in 2009. Fannie Mae's DUS MBS is an efficient execution for mortgage loans of all sizes with multiple dealer/investor bids that promote liquidity in the market. Fannie Mae also issued $4.8 billion of DUS structured securities backed by MBS. These securities are part of the Fannie Mae Guaranteed Multifamily Structures, or Fannie Mae GeMS™, an expanded suite of Fannie Mae multifamily mortgage-backed securities. Fannie Mae's GeMS™ helps to provide a continuous source of stable funding to support the nation's rental housing market.
"We congratulate the DUS lenders for delivering solid results during this period of dynamic market and economic change," said Ken Bacon, Executive Vice President of Fannie Mae's Multifamily Mortgage Business. "For 25 years, Fannie Mae has played a significant role in the multifamily rental housing market, providing effective, reliable financing solutions that help lenders and borrowers succeed. We continue to demonstrate our commitment to multifamily financing and providing housing to America's working families."
As more Americans view rental housing as an attractive and sustainable housing option, the need for workforce rental housing grows. To help meet this demand, approximately 91 percent of the multifamily units financed by Fannie Mae in 2010 were affordable to families at or below the median income of their communities.
Additional highlights of 2010 production include the following specialty production, which is part of the overall total multifamily investment number*:
"Fannie Mae is committed to financing quality, affordable, multifamily rental housing in every market, every day, and delivering financing solutions that are relevant today and sustainable for the future," adds Ken Bacon.