Fannie Mae released a report listing the largest producers of multifamily mortgage financing in 2011. The rankings are based on the volume of work these lenders pushed through Fannie’s Delegated Underwriting and Servicing (DUS) platform.
DUS relies on shared risk or "skin in the game" and provides competitive advantages to lenders and borrowers including certainty and speed of execution, delegated underwriting and servicing, competitive pricing, and strong credit risk management. Fannie Mae's DUS lenders delivered 98 percent of the company's 2011 multifamily financing.
The following DUS lenders produced the highest volume through the DUS platform in 2011, each providing at least $1 billion in volume to Fannie Mae, and are listed in descending order:
Top 11 DUS Producers in 2011:
- Wells Fargo Bank, NA
- Walker & Dunlop, LLC
- Beech Street Capital, LLC
- Deutsche Bank Berkshire Mortgage, Inc. (soon to be Berkeley Point Capital)
- PNC Bank, NA
- CBRE Multifamily Capital, Inc.
- M&T Realty Capital Corporation
- Arbor Commercial Funding LLC
- CWCapital, LLC
- Red Mortgage Capital, LLC
- Oak Grove Commercial Mortgage, LLC
As the demand for quality, affordable rental housing increased in 2011, Fannie Mae and its lender partners provided $24.4 billion in debt financing for 2,763 mortgage loans. Approximately 98 percent ($23.8 billion) of the debt that Fannie Mae financed in 2011 was delivered through the MBS execution. Fannie Mae is the single largest source of mortgage financing for rental housing.
"Fannie Mae has a terrific mission, to finance rental housing for millions of Americans," said Jeffery Hayward, senior vice president, Multifamily Mortgage Business, Fannie Mae. "Keeping capital flowing to the market for affordable rental housing provides stability for our communities and the nation." Approximately 89 percent of the 422,799 multifamily units financed by Fannie Mae in 2011 were affordable to families at or below area median income levels.
"Fannie Mae and our multifamily lender partners delivered solid results in 2011," said Manuel Menendez, Jr., vice president, head of multifamily customer engagement, Fannie Mae. "Despite this period of market uncertainty, our 2011 production is proof positive that Fannie Mae and our lenders remain committed to serving the nation's rental housing market. We congratulate all of our DUS lenders for an excellent year and recognize the leadership shown by our top DUS producers in 2011."
Additional 2011 production highlights include the following specialty categories, which are part of the overall total multifamily investment number:
- Multifamily Affordable Housing, which provides financing for rent-restricted properties and properties receiving other federal and state subsidies: $2.3 billion; an increase of 282 percent compared to 2010.
- Small loans (loans of up to $3 million, or $5 million in high cost areas): $2.4 billion; essentially the same as in 2010.
- Large loans (loans $25 million or higher): $6.9 billion, an increase of 48 percent compared to 2010.
- Structured transactions: $2 billion, an increase of 144 percent compared to 2010.
- Seniors housing: $1.4 billion; an increase of 121 percent compared to 2010.
- Manufactured housing communities: $535 million; essentially the same as in 2010.