Fannie Mae has provided nearly $70 billion in financing to support the multifamily market in 2021, and funding of multifamily affordable housing rose more than 23% last year to the highest volume in the history of its 33-year-old Delegated Underwriting and Servicing (DUS) program. At the same time, Fannie Mae continued to be a consistent source of liquidity for multifamily borrowers and support for renters in need as the economy and financial markets managed disruptions related to the pandemic.
“We are pleased to have increased our support of multifamily affordable housing in a year when the need for affordable housing options became more acute,” states Michele Evans, executive vice president and head of multifamily at Fannie Mae. “Working with our DUS lenders we will continue to focus on preserving and expanding the supply of affordable housing, as well as financing quality green and sustainable rental units. We will also ensure that resources remain available for renters as our economy and financial markets cope with pandemic-related disruptions.”
“We want to thank our DUS lenders for helping us support the multifamily market in another challenging year,” says Rob Levin, senior vice president of multifamily customer engagement at Fannie Mae. “Together with our lenders we have been able to ensure there is adequate liquidity in all multifamily markets at all times, and we look forward to working with our lender partners in 2022.”
Multifamily affordable housing volumes totaled $9.6 billion last year, up 23.1% from $7.8 billion in 2020. Green finance volume totaled $13.5 billion, up 3.6% from $13.0 billion in 2020, helping Fannie Mae grow its Multifamily Green MBS issuance to more than $100 billion last year.
The top 10 producers in 2021 by volume ($billion) were Walker & Dunlop LLC ($9.6), CBRE Multifamily Capital Inc. ($6.8), Berkadia Commercial Mortgage LLC ($6.6), Wells Fargo Multifamily Capital ($4.4), Newmark ($4.4), Greystone Servicing Company LLC ($4.3), JLL Real Estate Capital LLC ($4.3), Arbor Commercial Funding I LLC ($3.7), Capital One National Association ($3.7), and KeyBank National Association ($3.6).
The top five DUS producers for structured transactions in 2021 were CBRE Multifamily Capital Inc., Newmark, KeyBank National Association, Walker & Dunlop LLC, and PGIM Real Estate Agency Financing LLC.
The top five DUS producers for multifamily affordable housing in 2021 were Wells Fargo Multifamily Capital, Grandbridge Real Estate Capital LLC, CBRE Multifamily Capital Inc., Berkadia Commercial Mortgage LLC, and Walker & Dunlop LLC.
The top five DUS producers for small loans in 2021 were Arbor Commercial Funding I LLC, Greystone Servicing Company LLC, Berkadia Commercial Mortgage LLC, Walker & Dunlop LLC, and Lument.
The top five DUS producers for manufactured housing communities in 2021 were Walker & Dunlop LLC, KeyBank National Association, Berkadia Commercial Mortgage LLC, Bellwether Enterprise Real Estate Capital LLC and NorthMarq.
The top five DUS producers for green financing in 2021 were Walker & Dunlop LLC, CBRE Multifamily Capital Inc., Greystone Servicing Company LLC, Berkadia Commercial Mortgage LLC and JLL Real Estate Capital LLC.
The top five DUS producers for student housing in 2021 were Capital One National Association, Walker & Dunlop LLC, CBRE Multifamily Capital Inc., Grandbridge Real Estate Capital LLC and Bellwether Enterprise Real Estate Capital LLC.
The top five DUS producers for seniors housing in 2021 were PGIM Real Estate Agency Financing LLC, PNC Real Estate, Newmark, Walker & Dunlop LLC and Greystone Servicing Company LLC.
Production highlights for 2021 for individual business categories, which are included in the total multifamily production number, include $11 billion, comprised of $9.6 billion in multifamily affordable housing (for rent-restricted properties and properties receiving other federal and state subsidies), an increase of more than 23% from $7.8 billion in 2020; and $1.4 billion for properties with rent restrictions between 60% and 80% area median income.
For green financing, it came in at $13.5 billion, an increase of more than 3% from $13 billion in 2020. Structured transactions were $5.7 billion, small loans were $5.4 billion, manufactured housing communities were $3.3 billion, student housing was $0.9 billion and seniors housing was $0.8 billion.
