Fannie Mae and its Lenders Finance $28.9 Billion in Multifamily Loans in 2014

Company Is Leading Source of Financing and Securitization for Quality Rental Housing

Callie Dosberg

202-752-3117

WASHINGTON, DC – Fannie Mae (FNMA/OTC) provided $28.9 billion in financing to the multifamily market in 2014, working with lender partners to finance 446,000 units of multifamily housing. Fannie Mae securitized approximately 99 percent ($28.6 billion) of the loans it financed in 2014 through its MBS execution. The company continued to leverage its unique Delegated Underwriting and Servicing (DUS^®) risk-sharing program, which allows Fannie Mae and its lenders to be more responsive to customers and better serve the multifamily market.

"I am proud that Fannie Mae continues to lead the multifamily market," said Jeffery Hayward, Executive Vice President and Head of the Multifamily Mortgage Business, Fannie Mae. "Our success is due both to the strength of our partnerships with our lenders and to our DUS program, a unique risk-retention model, which creates the only commercial MBS that aligns the interests of the lender and Fannie Mae as the guarantor and provides significant benefits to MBS investors. I look forward to working with our partners in 2015 to remain the leading source of financing and securitization for quality rental housing in the United States, while balancing risk and return – in every market, for every income level, every day."  

For 27 years, Fannie Mae has relied on its DUS program to play a significant role in the multifamily housing market. Through DUS, Fannie Mae shares risk with its DUS Lenders and provides certainty and speed of execution; delegated underwriting and servicing; competitive pricing; and strong credit risk management. DUS Lenders delivered nearly 100 percent of Fannie Mae’s 2014 multifamily loan acquisitions. 

"In partnership with our 24 DUS Lenders, 2014 was another great year for multifamily production," said Hilary Provinse, Senior Vice President for Multifamily Customer Engagement, Fannie Mae. "The market was incredibly competitive this year. The first half of the year was slow for everyone, so to have reached $28.9 billion in volume is a significant accomplishment. But it’s not just the volume that’s impressive, it’s the quality of the business – we’re taking smart risks and winning the right deals." 

The following are the 10 DUS Lenders that produced the highest volumes in 2014 as well as the 5 DUS Lenders that produced the highest volumes in Multifamily Affordable Housing and Seniors Housing in 2014, listed in descending order:

Top 10 DUS Producers in 2014:

1. Walker & Dunlop, LLC
2. Wells Fargo Multifamily Capital
3. Berkadia Commercial Mortgage, LLC
4. CBRE Multifamily Capital, Inc.
5. PNC Real Estate
6. Capital One Multifamily Finance, LLC
7. Prudential Mortgage Capital Company
8. Berkeley Point Capital LLC
9. Arbor Commercial Funding, LLC
10. Greystone Servicing Corporation, Inc.

Top 5 DUS Producers for
Multifamily Affordable Housing in 2014:

1. Capital One Multifamily Finance, LLC
2. PNC Real Estate
3. Wells Fargo Multifamily Capital
4. Pillar Multifamily, LLC
5. Arbor Commercial Funding, LLC

Top 5 DUS Producers for
Seniors Housing in 2014:

1. KeyBank National Association
2. Berkadia Commercial Mortgage, LLC
3. PNC Real Estate
4. Wells Fargo Multifamily Capital
5. Grandbridge Real Estate Capital, LLC

Production highlights for individual business categories, which are part of the overall total 2014 multifamily production number, are listed below.

• Multifamily Affordable Housing – (financing for rent-restricted properties and properties receiving other federal and state subsidies) $2.6 billion, an increase from $2.3 billion in 2013
• Small Loans – (loans of up to $3 million, or $5 million in high-cost areas) $1.1 billion, a decrease from $2.3 billion in 2013
• Large Loans – (loans $25 million or higher) $12.6 billion, an increase from $10.4 billion in 2013
• Manufactured Housing Communities – $496 million, a decrease from $1.0 billion in 2013
• Student Housing – $831 million, an increase from $454 million in 2013
• Structured Transactions – $1.5 billion, a decrease from $1.9 billion in 2013
• Seniors Housing – $1.5 billion, a decrease from $1.6 billion in 2013

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