Fannie Mae provided $5.9 billion in investment to the multifamily rental housing market for the first half of 2010, the government-sponsored enterprise states in a semiannual report.
‘Despite challenged fundamentals, we are beginning to see an uptick in commitment activity and continue to manage credit risk by maintaining prudent lending standards and asset quality for new loans,’ says Kenneth Bacon, executive vice president of Fannie Mae's housing and community development division. ‘Fannie Mae's commitment to sustainability and support of the [Delegated Underwriting and Servicing] lenders help us in our efforts to stabilize the market.’
Fannie Mae's multifamily unit says it has bolstered its mortgage-backed securities (MBS) business since it has focused its efforts on securitization and broadening the investor base last year. The company currently provides liquidity to the multifamily market mainly through MBS issuance. Of the $5.9 billion invested in the first half of this year, $5.5 billion was delivered through MBS execution.
In the first half of the year, roughly 90% of the rental units financed by Fannie Mae have been for low- and moderate-income families.Â
SOURCE: Fannie Mae