Fannie Mae and its Lenders Finance $28.8 Billion in Multifamily Loans in 2013

Supporting the Multifamily Market with Continuous Liquidity while Maintaining Strong Credit Quality

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC), provided $28.8 billion in financing to the multifamily market in 2013, working with lender partners to finance 507,000 units of multifamily housing.  Approximately 99 percent ($28.5 billion) of the loans that Fannie Mae financed in 2013 were delivered through MBS execution. Fannie Mae met the Federal Housing Finance Agency’s goal to reduce multifamily volumes by 10 percent relative to 2012 levels, achieving 95 percent of its total volume capacity.

“I am proud that Fannie Mae continued to serve the multifamily market in 2013 with $28.8 billion of new acquisitions,” said Jeffery Hayward, Senior Vice President and Head of the Multifamily Mortgage Business, Fannie Mae.  “The need for quality, affordable rental housing is greater today than it’s ever been, and we will continue to do our part by providing liquidity, stability and affordability to the multifamily market and maintaining our credit standards.  Over 85 percent of the multifamily units we financed in 2013 were affordable to families earning at or below the median income in their area.”

For 26 years, Fannie Mae has relied on its Delegated Underwriting and Servicing (DUS^®) program to play a significant role in the multifamily housing market. The DUS program relies on shared risk with Lenders, or “skin in the game,” and provides certainty and speed of execution, delegated underwriting and servicing, competitive pricing, and strong credit risk management. DUS Lenders delivered 99 percent of Fannie Mae’s 2013 multifamily loan acquisitions. 

“Thanks to our 24 DUS Lenders, 2013 was another terrific year for multifamily production,” said Hilary Provinse, Vice President for Multifamily Customer Engagement, Fannie Mae. “As the competitive landscape heats up in 2014, we will rely on the strength of our delegated model and the flexibility of our single loan MBS to help our Lenders achieve their production goals as we continue to build a solid book of business.”  

The following are the top 10 DUS Lenders that produced the highest volume in 2013, as well as the top 5 DUS Lenders that produced the highest volume in the multifamily affordable housing and seniors housing categories in 2013, listed in descending order:

Top 10 DUS Producers in 2013:

1.    Walker & Dunlop, LLC
2.    Wells Fargo Multifamily Capital
3.    CBRE Multifamily Capital, Inc.
4.    Beech Street Capital, LLC
5.    Berkadia Commercial Mortgage, LLC
6.    Prudential Mortgage Capital Company
7.    M&T Realty Capital Corporation
8.    PNC Real Estate
9.    Arbor Commercial Funding, LLC
10.    Berkeley Point Capital LLC

Top 5 DUS Producers for
Multifamily Affordable Housing in 2013:

1. Wells Fargo Multifamily Capital
2. Oak Grove Capital
3. Greystone Servicing Corporation, Inc.
4. Walker & Dunlop, LLC
5. TIE:  Citibank, N.A. and PNC Real Estate

Top 5 DUS Producers for
Seniors Housing in 2013:

1.  KeyBank National Association
2.  Oak Grove Capital
3.  CBRE Multifamily Capital, Inc.
4.  Berkadia Commercial Mortgage, LLC
5.  Red Mortgage Capital, LLC

Production highlights for individual business categories, which are part of the overall total 2013 multifamily investment number are listed below.

• Multifamily Affordable Housing – (financing for rent-restricted properties and properties receiving other federal and state subsidies) $2.3 billion, a decrease from 2012’s $3.8 billion
• Small Loans – (loans of up to $3 million, or $5 million in high cost areas) $2.3 billion, down from $3.0 billion in 2012
• Large Loans – (loans $25 million or higher) $10.4 billion, down from $11.6 billion in 2012
• Manufactured Housing Communities – $1.0 billion, an increase from $912 million in 2012
• Student Housing – $454 million, a decrease from $712 million in 2012
• Structured Transactions – $1.9 billion, a slight increase from 2012’s $1.8 billion
• Seniors Housing – $1.6 billion, up from 2012’s $1.2 billion

As the largest source of financing in the multifamily sector, Fannie Mae remains a reliable partner across the spectrum of the nation’s rental housing needs.