The CEO of Fannie Mae, Timothy Mayopoulos, remarked in a call with HousingWire that this year marks the 30-year anniversary of their Delegated Underwriting and Servicing model for multifamily lenders.

These are the multifamily lenders who are authorized to underwrite, close and deliver most loans without Fannie Mae pre-review. And looking at their first quarter results today, the multifamily lending market is continuing to boom.

New multifamily business volume was $11.3 billion in the first quarter of 2018, a decrease from $20.3 billion in the fourth quarter of 2017.

While the volume dipped, that’s still 154,000 units of multifamily housing. More than 90% of the units the company financed were affordable to families earning at or below 120% of the area median income, providing support for both affordable and workforce housing.

However, the delinquency rate remains extremely low, at 0.13%. Mayopoulos explained that with the multifamily book of business, 100% of the bonds are issued through risk-sharing agreements. That means all the multifamily lenders listed here have skin in the game, and would share any potential losses.

“When you are financing multifamily like this, it seems more risky,” he said, “but demand is high, vacancy rates are low and turnover is much faster. The DUS model has worked for us for 30 years, through the good times and the bad.”

About the Author

Most Popular Articles

Housing market flashing recession signal

The housing market is signaling there will be an economic recession by the 2020 election, according to Benn Steil, director of international economics at the Council on Foreign Relations. “When income fails to keep pace with home prices, the latter must fall back,” the post said. “Falling home prices, in turn, drive down household spending.”

Oct 11, 2019 By

Latest Articles

Pennsylvania sues rent-to-own operator Vision Property Management for preying on low-income renters

Vision Property Management has already run into trouble in Wisconsin and New York, with each state claiming that the company’s rent-to-own business model is actually a scam designed to prey on low-income individuals who want to buy a home. And now, the company has another state to deal with: Pennsylvania.

Oct 11, 2019 By