Cap/Swap Counterparties for Multifamily Transactions

Below is a list of approved interest rate hedge providers for borrowers who are required to purchase a hedge in connection with a Multifamily debt transaction. The financial institutions listed below, as of April 22, 2014, met Fannie Mae's ratings requirements for such transactions; the ratings requirements are at least an A+ issuer or senior debt rating from Standard & Poor's and at least an A1 issuer or senior debt rating from Moody's.

  • The Bank of New York Mellon
  • Commonwealth Bank of Australia
  • HSBC Bank USA, N.A.
  • JP Morgan Chase Bank, N.A.
  • Royal Bank of Canada
  • SMBC Derivative Products Ltd. and SMBC Capital Markets, Inc.
  • Wells Fargo Bank, N.A.

Only providers on this list can be used for new interest rate hedges (including the replacement of existing hedges upon expiration). However, the fact that a provider included on a previous list is not included on this list does not indicate that Fannie Mae believes any existing hedges with that provider should be terminated and replaced. Fannie Mae will notify its Lenders if it determines that a ratings downgrade or other adverse event for a given provider necessitates a termination.

This list ("List") of interest rate cap and swap providers ("Providers") is current only as of the date this List was released. Fannie Mae makes no promise that any Provider will remain acceptable to Fannie Mae in the future and does not undertake to inform anyone of changes to this List. This List names Providers whose interest rate caps and swaps are, as of the date of this List, generally acceptable to Fannie Mae for Fannie Mae's own risk and account. Fannie Mae does not intend this List to be an endorsement of any Provider. Fannie Mae is not and will not be liable for the current or future condition (financial or otherwise) or performance of any Provider. Interest rate caps, swaps and other business transacted with any Provider are for your own risk and account.

If you have any questions, please contact Stu Davis via email or call at (202) 752-0042.