Fannie Mae and its Lenders Finance $24 Billion in 2011

Fannie Mae is the Leading Provider of Liquidity to the Multifamily Market

Andrew Wilson

2027525168

WASHINGTON, DC - Fannie Mae (FNMA/OTC), the single largest source of mortgage financing for rental housing, today announced 2011 results for its multifamily business. As the demand for quality, affordable rental housing increased in 2011, the company and its lender partners provided $24.4 billion in debt financing for 2,763 mortgage loans.  Approximately 98 percent ($23.8 billion) of the debt that Fannie Mae financed in 2011 was delivered through the MBS execution.

“Fannie Mae has a terrific mission, to finance rental housing for millions of Americans,” said Jeffery Hayward, Senior Vice President, Multifamily Mortgage Business, Fannie Mae. “Keeping capital flowing to the market for affordable rental housing provides stability for our communities and the nation.” Approximately 89 percent of the 422,799 multifamily units financed by Fannie Mae in 2011 were affordable to families at or below area median income levels. 

Hayward, a 25-year veteran of Fannie Mae with deep experience in credit management and in the single family and multifamily markets, was recently appointed to lead the company’s multifamily business following the retirement of Kenneth Bacon after eighteen years of service.

For more than twenty-five years, Fannie Mae has played a significant role in the multifamily rental housing market, providing effective, reliable financing solutions that help lenders and borrowers succeed. Fannie Mae’s multifamily business is built on its Delegated Underwriting and Servicing (DUS®) platform.  A unique model in the multifamily sector, DUS relies on shared risk or “skin in the game” and provides competitive advantages to lenders and borrowers including 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 2011 multifamily financing.  

“Fannie Mae and our multifamily lender partners delivered solid results in 2011,” said Manuel Menendez, Jr., Vice President, Head of Multifamily Customer Engagement, Fannie Mae.  “Despite this period of market uncertainty, our 2011 production is proof positive that Fannie Mae and our lenders remain committed to serving the nation’s rental housing market. We congratulate all of our DUS lenders for an excellent year and recognize the leadership shown by our top  DUS producers in 2011.”

The following DUS lenders produced the highest volume through the DUS platform in 2011, each providing at least $1 billion in volume to Fannie Mae, and are listed in descending order:
Top 11 DUS Producers in 2011:

1. Wells Fargo Bank, NA
2. Walker & Dunlop, LLC
3. Beech Street Capital, LLC
4. Deutsche Bank Berkshire Mortgage, Inc. (soon to be Berkeley Point Capital)
5. PNC Bank, NA
6. CBRE Multifamily Capital, Inc.
7. M&T Realty Capital Corporation
8. Arbor Commercial Funding LLC
9. CWCapital, LLC
10. Red Mortgage Capital, LLC
11. Oak Grove Commercial Mortgage, LLC

Additional 2011 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: $2.3 billion; an increase of 282 percent compared to 2010.
• Small Loans (loans of up to $3 million, or $5 million in high cost areas): $2.4 billion; essentially the same as in 2010.
• Large Loans (loans $25 million or higher): $6.9 billion, an increase of 48 percent compared to 2010.
• Structured Transactions: $2 billion, an increase of 144 percent compared to 2010.
• Seniors Housing: $1.4 billion; an increase of 121 percent compared to 2010.
• Manufactured Housing Communities: $535 million; essentially the same as in 2010. 

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

“We look forward to continuing Fannie Mae’s support of the multifamily housing market, and delivering on our mission in 2012,” added Hayward.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers.  Our job is to help those who house America.

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