Fannie, DUS Lenders Invested $19.8B In Multifamily Last Year

Posted by Orb Staff on February 02, 2010 No Comments
Categories : Commercial Mortgage

Through its lender and housing partners, Fannie Mae provided $19.8 billion in debt financing for the multifamily rental housing market in 2009, the company says. Fannie Mae's DUS lenders and affiliates delivered $18.6 billion of the company's total investment in multifamily housing by utilizing the company's DUS platform. DUS lenders are able to underwrite, close and deliver most loans without pre-review by Fannie Mae.

Approximately 81% of Fannie Mae total multifamily production, or $16 billion, was a mortgage-backed security (MBS) execution in 2009, compared to 17%, or $5.9 billion, in 2008. Fannie Mae began securitizing DUS loans and created MBS/DUS in the early 1990s, which offers investors Fannie Mae's guaranty of timely payment of principal and interest. By ramping up its MBS execution, Fannie Mae Multifamily is providing liquidity to the multifamily market mainly through MBS issuance.

Approximately 87% of the multifamily units financed by Fannie Mae last year were affordable to families at or below the median income of their communities. Approximately 49% of all multifamily units financed by Fannie Mae served special affordable families (low- and very-low income families in low-income areas), and 48% of the multifamily units financed were made in underserved markets.

Additional highlights of 2009 production include the following specialty production, which is part of the overall total multifamily investment number:

  • large loans (loans $25 million or higher): $4.4 billion;
  • small loans (loans of up to $3 million, or $5 million in high-cost areas): $2.2 billion;
  • DUS flow loans (loans between $3 million and $25 million): $9.4 billion;
  • structured transactions: $3.4 billion;
  • multifamily affordable housing, which provides financing for rent-restricted properties for people earning 60% or less of median income: $1.1 billion;
  • pools: $154 million;
  • bond credit enhancements: $273 million;
  • MBS: $16 billion;
  • discount MBS: $196 million;
  • manufactured housing communities: $1.1 billion; and
  • seniors housing: $1 billion.

SOURCE: Fannie Mae

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