As the largest source of multifamily financing in 2012, Fannie Mae provided the multifamily market with $33.8 billion last year, marking the third highest acquisition year in its history.
The company worked with lender partners to refinance nearly 560,000 units of multifamily housing. An estimated 98%, or $33.1 billion, of the loans that Fannie Mae financed in 2012 were through mortgage-backed securities.
“In 2012 the multifamily market was strong, with solid fundamentals remaining in place,” said Jeffery Hayward, senior vice president, head of the multifamily mortgage business, Fannie Mae.
Hayward noted that private capital continued to return to the market, a crucial step to restoring a more normal lending environment. “Having a balanced market with diverse sources of liquidity and credit means the whole market is healthy and everyone is doing their part. We look forward to continuing our work to provide liquidity, stability and affordability to the rental housing market,” said Hayward.
For the past 25 years, Fannie Mae has relied heavily on the Delegated Underwriting and Servicing program within the multifamily housing market. The program relies on share risk with lenders and provides certainty and speed of execution for the company.
“As we head into the 25th year of our DUS program, we continue to see the benefits that shared risk provides in supporting sound multifamily lending,” said Manuel Menendez, Jr., senior vice president, head of multifamily customer engagement, Fannie Mae.
Menendez added that since DUS began, Fannie Mae and its lending partners have been the top source of financing for rental housing units affordable to working families with incomes up to 100% of area median income.
“In fact, 88% of the units in our current book of business support families at or below area median income. Fannie Mae is committed to serving the nation’s rental market in the years to come. We thank all of our DUS lenders for their work and congratulate them on another outstanding year,” Menendez said.
Click on the image below to see the top 10 DUS lenders producing the highest volume via the DUS platform in 2012.
Fannie Mae also provided a list of 2012 highlights that fall under the total multifamily investment umbrella. To see the list, click on the image below.