Fannie Mae and its Lenders Financed Approximately $17 Billion in 2010, Ensuring Reliable, Sustainable Liquidity to the Multifamily Rental Housing MarketBy Fannie Mae, PRNE
Sunday, February 6, 2011
Fannie Mae helping build multifamily communities for more than 25 years
WASHINGTON, February 7, 2011 - Fannie Mae (OTC Bulletin Board: FNMA), the leading source of multifamily
mortgage financing for workforce rental housing, today announced that in 2010
the company, in conjunction with its lender and housing partners, provided
$16.9 billion in debt financing for the rental housing market, through
approximately 2,300 multifamily mortgage loans for 306,000 rental units
across the country.
Fannie Mae's Delegated Underwriting and Servicing (DUS(R)) lenders and
affiliates delivered 97 percent or $16.4 billion of the company's 2010
financing in multifamily housing by utilizing the DUS(R) platform - the
cornerstone of Fannie Mae's Multifamily business. The DUS platform relies on
a concept of shared risk or "skin in the game" and provides competitive
advantages to lenders including certainty and speed of execution, delegated
underwriting and servicing, competitive pricing, and strong credit risk
The company's MBS execution, which offers investors Fannie Mae's guaranty
of timely payment of principal and interest, accounted for 97 percent of
total production compared to 81 percent in 2009. Fannie Mae's DUS MBS is an
efficient execution for mortgage loans of all sizes with multiple
dealer/investor bids that promote liquidity in the market. Fannie Mae also
issued $4.8 billion of DUS structured securities backed by MBS. These
securities are part of the Fannie Mae Guaranteed Multifamily Structures, or
Fannie Mae GeMS(TM), an expanded suite of Fannie Mae multifamily
mortgage-backed securities. Fannie Mae's GeMS(TM) helps to provide a
continuous source of stable funding to support the nation's rental housing
"We congratulate the DUS lenders for delivering solid results during this
period of dynamic market and economic change," said Ken Bacon, Executive Vice
President of Fannie Mae's Multifamily Mortgage Business. "For 25 years,
Fannie Mae has played a significant role in the multifamily rental housing
market, providing effective, reliable financing solutions that help lenders
and borrowers succeed. We continue to demonstrate our commitment to
multifamily financing and providing housing to America's working families."
As more Americans view rental housing as an attractive and sustainable
housing option, the need for workforce rental housing grows. To help meet
this demand, approximately 91 percent of the multifamily units financed by
Fannie Mae in 2010 were affordable to families at or below the median income
of their communities.
Additional highlights of 2010 production include the following specialty
production, which is part of the overall total multifamily investment
-- Large Loans and Structured (loans $25 million or higher and credit facilities): $5.5 billion; -- Small Loans (loans of up to $3 million, or $5 million in high cost areas): $2.4 billion; -- Multifamily Affordable Housing (MAH), which provides financing for rent-restricted properties for people earning 60 percent or less of median income: $830 million; -- Manufactured Housing Communities: $540 million; -- Seniors Housing: $640 million.
"Fannie Mae is committed to financing quality, affordable, multifamily
rental housing in every market, every day, and delivering financing solutions
that are relevant today and sustainable for the future," adds Ken Bacon.
Fannie Mae exists to expand affordable housing and bring global capital
to local communities in order to serve the U.S. housing market. Fannie Mae
has a federal charter and operates in America's secondary mortgage market to
enhance the liquidity of the mortgage market by providing funds to mortgage
bankers and other lenders so that they may lend to home buyers. Our job is to
help those who house America.
DUS is a registered mark of Fannie Mae. Unauthorized use of this mark is
*Some specialty production numbers may also be included in other
specialty numbers. For example, an affordable Small Loan may also be a part
of the overall Multifamily Affordable Housing Number.
Amy Bonitatibus, +1-202-752-4144, or +1-202-270-6282 (mobile), or Resource Center, +1-800-732-6643
Tags: District of Columbia, Fannie Mae, February 7, Washington