Fannie Mae Multifamily Closes 2018 with Volume of More than $65 Billion

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Jan 24, 2019, 11:00 ET

WASHINGTON, Jan. 24, 2019 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) provided more than $65 billion in financing to support the multifamily market in 2018 with its Delegated Underwriting and Servicing (DUS^®) program. Fannie Mae continued to serve as a key source of liquidity by attracting a diverse investor base to purchase our DUS Mortgage-Backed Securities (MBS), while building a profitable and sustainable book of business.

"For more than 30 years, the DUS platform has brought stability to the multifamily market. Our innovative thinking is driving the industry forward and our commitment to serving our customers remains our top priority," said Jeffery Hayward, Executive Vice President of Multifamily, Fannie Mae. "Our lender partnerships are also propelling Fannie Mae to be part of a global movement to transform rental housing to be healthier for residents and to help reduce energy and water consumption at the properties we finance."

Fannie Mae was recognized in 2018 as the largest issuer of Green Bonds in the world, with more than $20 billion in Green MBS backed by either green certified properties or properties targeting a reduction in energy or water consumption. Fannie Mae increased its Green Financing portfolio to over $50 billion in 2018, driven by $20 billion in Green Financing. In 2018, Fannie Mae made LIHTC equity investment commitments towards meeting FHFA's $500 million volume cap by deploying equity to rural and other underserved housing markets throughout the United States. Additionally, Fannie Mae led the affordable market with overall production of $7.4 billion, an increase of 9% from 2017.

"Multifamily had another outstanding year in 2018, thanks to our lenders," said Rob Levin, Senior Vice President for Multifamily Customer Engagement, Fannie Mae. "Together, we supported all market segments, bringing liquidity to the market, while building a balanced portfolio that reflects our strategy with strong credit quality and mission-rich business."

The following top 10 DUS Lenders produced the highest business volumes in 2018. Also listed below are the Top 5 Lender rankings for highest volumes in 2018 for Multifamily Affordable Housing, Small Loans, Green Financing, Seniors Housing, Structured Transactions, Manufactured Housing Communities, and Student Housing:

Top 10 DUS Producers in 2018 Volume ($Billion)

Wells Fargo Multifamily Capital $8.1
Walker & Dunlop, LLC $6.9
Berkadia Commercial Mortgage, LLC $6.6
CBRE Multifamily Capital, Inc. $6.1
Newmark Knight Frank $4.3
Greystone Servicing Corporation, Inc. $3.9
Capital One, National Association $3.8
KeyBank National Association $3.4
PGIM Real Estate Finance $3.3
Arbor Commercial Funding I, LLC $3.2

Top 5 DUS Producers for Multifamily Affordable Housing in 2018

Wells Fargo Multifamily Capital
CBRE Multifamily Capital, Inc.
Greystone Servicing Corporation, Inc.
PGIM Real Estate Finance
Jones Lang LaSalle Multifamily, LLC

Top 5 DUS Producers for Small Loans in 2018*

Greystone Servicing Corporation, Inc.
Arbor Commercial Funding I, LLC
Hunt Mortgage Group
Walker & Dunlop, LLC
Bellwether Enterprise Real Estate Capital, LLC

Top 5 DUS Producers for Green Financing in 2018

Berkadia Commercial Mortgage, LLC
Greystone Servicing Corporation, Inc.
Arbor Commercial Funding I, LLC
CBRE Multifamily Capital, Inc.
Capital One, National Association

Top 5 DUS Producers for Seniors Housing in 2018

Berkadia Commercial Mortgage, LLC
Grandbridge Real Estate Capital, LLC
Capital One, National Association
CBRE Multifamily Capital, Inc.
M&T Realty Capital Corporation

Top 5 DUS Producers for Structured Transactions in 2018

Wells Fargo Multifamily Capital
Newmark Knight Frank
Walker & Dunlop, LLC
PNC Real Estate
Berkadia Commercial Mortgage, LLC

Top 5 DUS Producers for Manufactured Housing Communities in 2018

Walker & Dunlop, LLC
Wells Fargo Multifamily Capital
KeyBank National Association
Berkadia Commercial Mortgage, LLC
Capital One, National Association

Top 5 DUS Producers for Student Housing in 2018

Wells Fargo Multifamily Capital
Walker & Dunlop, LLC
CBRE Multifamily Capital, Inc.
PGIM Real Estate Finance
KeyBank National Association

Listed below are 2018 production highlights for individual business categories, which are included in the total multifamily production number.

Affordable Housing – $7.4 billion comprised of $6.0 billion in Multifamily Affordable Housing (for rent-restricted properties and properties receiving other federal and state subsidies), an increase of 10 percent from $5.4 billion in 2017; and $1.4 billion for properties with rent restrictions between 60 percent and 80 percent AMI, in line with $1.4 billion in 2017
Small Loans* – $2.2 billion
Green Financing – $20.1 billion (properties with Green Building Certifications or loans targeting a 25 percent reduction or more in energy or water consumption)
Student Housing – $2.7 billion
Structured Transactions – $9.5 billion
Seniors Housing – $2.3 billion
Manufactured Housing Communities – $2.9 billion, an increase of 56 percent from $1.9 billion in 2017

As the most reliable source of financing in the multifamily sector, Fannie Mae remains committed to serving the spectrum of the nation's rental housing needs. To learn more about Fannie Mae's Multifamily business, visit https://www.fanniemae.com/multifamily.

*Small Loans are defined as loans of $3 million or less nationwide and $5 million or less in high-cost markets, and typically finance multifamily properties with five to 50 units.

**Due to rounding, amounts reported may not add up to overall totals.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.

SOURCE Fannie Mae