Fannie Mae’s Delegated Underwriting and Servicing (DUS) program had a record year in 2017, providing more than $67 billion in financing and supporting over 750,000 units of multifamily housing.
“[2017 marked] our 30th anniversary of DUS, a platform that relies on shared risk and strong lender partnerships to serve the needs of the rental housing market,” said Jeffery Hayward, executive vice president of multifamily at Fannie Mae, in a statement. “While we’re proud of the volume and the lives of people who are impacted by our work, we’re also proud of the consistent credit quality of our acquisitions and the positive outcomes that occur because of shared risk. We not only provided consistent liquidity to the market [last year], but we also delivered tremendous value to investors who bought our DUS MBS and Fannie Mae Guaranteed Multifamily Structures [Fannie Mae GeMS].”
According to the government-sponsored enterprise (GSE), it also led the market last year with $65.4 billion worth of new issue mortgage-backed securities that attracted more investors purchasing DUS MBS than ever before and provided additional liquidity to the market, with more than $12 billion in Fannie Mae GeMS. Fannie continued to invest in technology to better serve its customers and investors, including DUS Disclose, a state-of the-art disclosure platform designed to more easily access data on its properties.
“We want to thank our DUS lender partners for an extraordinary 2017. Together, we supported all segments of the multifamily market and broke records in Green Financing, Structured Transactions, Seniors Housing, and Multifamily Affordable Housing [MAH],” said Woody Brewer, vice president of customer engagement at Fannie Mae. “I’m very excited about the success we’ve had in transforming the market and making Green Financing the new standard in multifamily.”
Green Financing provided positive and measurable financial, social, and environmental savings to property owners, tenants, lenders, and investors. When green improvements are made and tenants pay the utility bills, the bills can decrease by about $125 annually, says the GSE.
Walker & Dunlop finished 2017 as the largest Fannie Mae DUS lender by volume of multifamily loans originated after ranking second in 2016. “It’s exciting to see the scale and continued success we’ve achieved with Fannie Mae benefiting Walker & Dunlop’s clients every day,” said Don King, the company’s executive vice president, multifamily, in a statement. “To finish 2017 as Fannie Mae’s largest partner for the fourth time in six years is truly amazing, and we look forward to a continued strong partnership in 2018.”
The following DUS lenders produced the highest business volume in 2017, according to Fannie Mae, as well as the highest volumes for the GSE’s MAH, Small Loans, Green Financing, and Seniors Housing programs:
Top 10 Fannie Mae DUS Lenders in 2017, by Volume ($billions)
1. Walker & Dunlop, $9.1
2. Berkadia Commercial Mortgage, $8.0
3. Wells Fargo Multifamily Capital, $5.2
4. CBRE Multifamily Capital, $5.1
5. Berkeley Point Capital, $4.6
6. KeyBank National Association, $4.2
7. PNC Real Estate, $3.4
8. Arbor Commercial Funding l, $3.2
8. Greystone Servicing Corp., $3.2
10. Capital One Multifamily Finance, $2.9
Top 5 DUS Producers for MAH in 2017
1. Wells Fargo Multifamily Capital
2. Walker & Dunlop
3. Jones Lang LaSalle Multifamily
4. Pillar Multifamily, a division of SunTrust Bank
5. KeyBank National Association
Top 5 DUS Producers for Small Loans in 2017*
1. Arbor Commercial Funding I
2. Greystone Servicing Corp.
3. Hunt Mortgage Group
4. JPMorgan Chase & Co.
5. PNC Real Estate
*Small Loans are defined as loans of $3 million or less nationwide and $5 million or less in high-cost markets, as well as those for properties with 5 to 50 units.
Top 5 DUS Producers for Green Financing in 2017
1. Walker & Dunlop
2. Berkadia Commercial Mortgage
3. CBRE Multifamily Capital
4. Wells Fargo Multifamily Capital
5. Berkeley Point Capital
Top 5 DUS Producers for Seniors Housing in 2017
1. KeyBank National Association
2. Berkadia Commercial Mortgage
3. Jones Lang LaSalle Multifamily
4. Greystone Servicing Corp.
5. Grandbridge Real Estate Capital
