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Fannie Mae ends 2016 with $55.3B in multifamily volume

Fannie Mae provided $55.3 billion in financing and supported 724,000 units of multifamily housing in 2016 – the highest volume in the history of its Delegated Underwriting and Servicing (DUS) program. The company also led the market last year with $54.9 billion worth of new issue mortgage-backed securities that attracted more investors purchasing DUS MBS than ever before and provided additional liquidity to the market with more than $10 billion in Guaranteed Multifamily Structures, according to a report from the agency.

“I am proud of the business we did last year with our lenders and borrowers to support affordable and workforce housing across multifamily market segments. We achieved record volumes for Affordable, Green Financing, Student Housing, and Manufactured Housing Communities,” said Jeffery Hayward, executive vice president of multifamily, in a press release. “Our unique DUS risk-sharing model allows us to leverage lender delegation to do more business with greater certainty of execution, providing borrowers with faster decisions and quicker loan closings. Inherent in this model is a reliance on strong partnerships – from borrower to lender to Fannie Mae to investor – and everyone has a vested interest to succeed.”

Fannie Mae Multifamily devoted significant resources in 2016 to invest in technology as part of an effort to support its business activities and will continue to make improvements to systems and processes in 2017. Additionally, the company introduced more frequent and transparent communication and collaboration opportunities to further enhance the customer experience and reinforce its partnerships.

“This is a relationship-based business – you need reliable, trusting partners to get deals done for borrowers and meet the needs of the rental housing market,” said Hilary Provinse, senior vice president for multifamily customer engagement, in the release. “Whether borrowers are in need of portfolio management strategies or looking to make their properties more energy-efficient or solving for a complex affordable transaction, Fannie Mae has the financing solutions. Thanks to our 25 DUS Lender partners, we had a remarkable 2016 and we look forward to another great year.”

The following top 10 DUS Lenders produced the highest business volumes in 2016. Also listed below are the Top 5 Lender rankings for highest volumes in Multifamily Affordable Housing (MAH), Small Loans, Green Financing, and Seniors Housing in 2016:

Top 10 DUS Producers in 2016 Volume ($Billion)
1.     Wells Fargo Multifamily Capital $11.7
2.     Walker & Dunlop, LLC $6.0
3.     CBRE Multifamily Capital, Inc. $4.8
4.     Berkadia Commercial Mortgage, LLC $4.2
5.     Berkeley Point Capital, LLC $3.9
6.     Capital One Multifamily Finance, LLC $2.7
7.     Prudential Mortgage Capital Company $2.5
8.     Arbor Commercial Funding I, LLC $2.3
9.     Greystone Servicing Corporation, Inc. $2.2
10.   KeyBank National Association $2.2

 

Top 5 DUS Producers for MAH in 2016       Top 5 DUS Producers for Small Loans in 2016*
1.     Wells Fargo Multifamily Capital 1.     Greystone Servicing Corporation, Inc.
2.     Pillar Multifamily, a division of SunTrust Bank 2.     Wells Fargo Multifamily Capital
3.     Greystone Servicing Corporation, Inc. 3.     Arbor Commercial Funding I, LLC
4.     Jones Lang LaSalle Multifamily, LLC 4.     Hunt Mortgage Group
5.     Berkeley Point Capital, LLC 5.     Walker & Dunlop, LLC

 

Top 5 DUS Producers for Green Financing in 2016  Top 5 DUS Producers for Seniors Housing in 2016
1.     Walker & Dunlop, LLC 1.     CBRE Multifamily Capital, Inc.
2.     CBRE Multifamily Capital, Inc. 2.     Wells Fargo Multifamily Capital
3.     Wells Fargo Multifamily Capital 3.     KeyBank National Association
4.     Berkeley Point Capital, LLC 4.     Berkadia Commercial Mortgage, LLC
5.     Berkadia Commercial Mortgage, LLC 5.     Greystone Servicing Corporation, Inc.

 

Listed below are 2016 production highlights for individual business categories, which are included in the total multifamily production number.

  • Affordable Housing – overall production of $5.6 billion comprised of $4.3 billion in MAH (for rent-restricted properties and properties receiving other federal and state subsidies), an increase of 43 percent from $3.0 billion in 2015; and $1.3 billion for properties with rent restrictions between 60 percent and 80 percent AMI, an increase of 101 percent from $648 million in 2015
  • Small Loans* – $1.9 billion, an increase of 19 percent from $1.6 billion in 2015
  • Green Financing – (properties with Green Building Certifications or loans targeting a 20 percent reduction or more in energy or water consumption reduction) $3.6 billion, an increase of over 1,000 percent from $309 million in 2015
  • Manufactured Housing Communities – $3.0 billion, an increase of 282 percent from $786 million in 2015
  • Student Housing – $2.5 billion, an increase of 67 percent from $1.5 billion in 2015
  • Structured Transactions – $4.5 billion, an increase of 29 percent from $3.5 billion in 2015
  • Seniors Housing – $1.5 billion compared to $2.7 billion in 2015

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