Fannie Mae (FNMA/OTC) provided $33.8 billion in financing to the multifamily market in 2012, the third highest acquisition year in its history. The company remained the largest source of multifamily financing in 2012, working with lender partners to finance nearly 560,000 units of multifamily housing. Approximately 98 percent ($33.1 billion) of the loans that Fannie Mae financed in 2012 were delivered through MBS execution.
"In 2012 the multifamily market was strong, with solid fundamentals remaining in place," said Jeffery Hayward, Senior Vice President, Head of the Multifamily Mortgage Business, Fannie Mae. "Private capital continued to return to the market, an important step to restoring a more normal lending environment. Having a balanced market with diverse sources of liquidity and credit means the whole market is healthy and everyone is doing their part. We look forward to continuing our work to provide liquidity, stability and affordability to the rental housing market."
Fannie Mae has relied on its Delegated Underwriting and Servicing (DUS) program to play a significant role in the multifamily housing market for twenty-five years. This unique private capital model provides effective, reliable financing solutions that help lenders and borrowers succeed. DUS 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. Fannie Mae's DUS lenders delivered 98 percent of the company's 2012 multifamily loan acquisitions.
"As we head into the 25(th) year of our DUS program, we continue to see the benefits that shared risk provides in supporting sound multifamily lending," said Manuel Menendez, Jr., Senior Vice President, Head of Multifamily Customer Engagement, Fannie Mae. "Since DUS began, Fannie Mae and our lender partners have been the leading source of financing for rental housing units affordable to working families with incomes up to 100 percent of area median income. In fact, 88 percent of the units in our current book of business support families at or below area median income. Fannie Mae is committed to serving the nation's rental market in the years to come. We thank all of our DUS lenders for their work and congratulate them on another outstanding year."
The following are the top 10 DUS lenders that produced the highest volume through the DUS platform in 2012, listed in descending order:
Top 10 DUS Producers in 2012:
1. Walker & Dunlop, LLC
2. Wells Fargo Multifamily Capital
3. Beech Street Capital, LLC
4. CBRE Multifamily Capital, Inc.
5. Berkeley Point Capital LLC
6. Berkadia Commercial Mortgage, LLC
7. M&T Realty Capital Corporation
8. Arbor Commercial Funding, LLC
9. PNC Real Estate
10. Greystone Servicing Corporation, Inc.
Additional 2012 production highlights include the following specialty categories, which are part of the overall total multifamily investment number:
-- Multifamily Affordable Housing, which provides financing for rent-restricted properties and properties receiving other federal and state subsidies: $3.8 billion, up from $2.3 billion in 2011.
-- Small Loans (loans of up to $3 million, or $5 million in high cost areas): $3 billion, up from $2.4 billion in 2011.
-- Large Loans (loans $25 million or higher): $11.6 billion, an increase of $4.7 billion from 2011.
-- Manufactured Housing Communities: $912 million, an increase of $377 million from 2011.
-- Student Housing: $712 million, an increase of $233 million from 2011.
-- Structured Transactions: $1.8 billion, a slight decrease from 2011's $2 billion.
-- Seniors Housing: $1.2 billion, a slight decrease from 2011's $1.4 billion.
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