DUS Alliance Soars to New Heights: 2016 DUS Meeting Recap

Multifamily Wire

Multifamily Facts

Jeff HaywardWe watched the DUS® Platform soar to new heights and the "DUS Alliance" strengthen its bond at last week's 2016 DUS Meeting, with more than 350 attendees, over 30 speakers across a dozen sessions, and an extraordinary cast of superheroes. This was perhaps the most exciting DUS Meeting we've ever hosted and we're looking forward to next year's meeting in Charleston, South Carolina! We are proud to be at the "Heart of Housing" and with your partnership and the power of the DUS brand, we will continue to finance tall and small buildings in a single bound as the leading source of financing and securitization for quality rental housing in the United States.

During the meeting, we discussed and demonstrated the importance that a culture of service has for an organization and renewed our commitment to strengthening our unique DUS partnership. That's why we are focused on making it easier and simpler to do business with Fannie Mae, finding new ways to engage with you, and organizing ourselves to be more responsive to your needs.

We shared FHFA's announcement of May 4 that it was increasing the 2016 multifamily lending caps for both Fannie Mae and Freddie Mac from $31 billion to $35 billion, effective immediately. FHFA also announced a change to the excluded categories for loans to finance energy or water efficiency improvements through the Fannie Mae Green MBS Program. This change has not altered our plans to grow this business nor changed our pricing approach for this product. Updated tools to support lender reporting requirements on the Green MBS will be provided shortly.

And, we reported another solid quarter of financial results for Multifamily and Fannie Mae on May 5. Below are highlights from our filing.

Multifamily Business Highlights

  • Multifamily net income for the first quarter of 2016 was $333 million. An additional $103 million in net interest income and yield maintenance income was earned on Fannie Mae multifamily mortgage loans and MBS recognized in the Capital Markets group's results. Additional multifamily market making activity is reflected in the Capital Markets group's results.
  • Multifamily net income was primarily driven by $385 million in guaranty fee income in the first quarter of 2016, compared with $375 million for the fourth quarter of 2015. The Multifamily guaranty book of business was $220.7 billion as of March 31, 2016, compared with $213.4 billion as of December 31, 2015.
  • Multifamily provided financing for approximately 161,000 units of multifamily housing in the first quarter of 2016. Over 80% of the multifamily units we financed were affordable to families earning at or below 120% of the median income in their area, providing support for both workforce housing and affordable housing.
  • Multifamily new business volume for the first quarter of 2016 totaled $12.6 billion. Approximately 69% of Fannie Mae's multifamily new business volume counted towards FHFA's 2016 multifamily volume cap.

Company Highlights

  • Fannie Mae reported net income of $1.1 billion and comprehensive income of $936 million for the first quarter of 2016.
  • Fannie Mae expects to pay $919 million in dividends to Treasury in June 2016. With the expected June dividend payment, the company will have paid a total of $148.5 billion in dividends to Treasury. Dividend payments do not reduce prior Treasury draws, which total $116.1 billion since 2008.
  • Fannie Mae provided approximately $115 billion in liquidity to the mortgage market in the first quarter of 2016, enabling families to buy, refinance, or rent homes.

More information is available here:

Best,

Jeff