Fannie Mae Multifamily Financing Breaks Record in 2020

Amid the chaos of the pandemic, Fannie Mae’s Delegated Underwriting and Servicing (DUS) program provided the most support it ever has to multifamily investors, reaching $76 billion in financing throughout 2020.

Breaking Records in an Unprecedented Economic Environment

Fannie Mae set out to keep the housing market stabilized in 2020 for the many Americans who rely on their services. Given its year-end report, Fannie was able to accomplish that goal—and then some.

“Fannie Mae continued to play an important role as a source of financing for multifamily rental housing at a time when borrowers and their tenants faced unprecedented challenges. Working with our DUS lenders, we served as a reliable source of financing for multifamily borrowers in an extraordinary year that called for the development of resources for renters and forbearance for borrowers.”

—Michele Evans, executive vice president of multifamily at Fannie Mae. “

Fannie Mae multifamily affordable housing volume reached $7.8 billion, a 9% increase from $7.2 billion in 2019, as well as reaching $11.6 billion in structured transaction volume, an increase of 34% from 2019. Among other records broken in 2020, Fannie Mae’s manufactured housing communities financing program reached an all-time high of $5.5 billion, a whopping 120% increase from 2019, when the program totaled $2.5 billion in volume.

Other segments of Fannie Mae’s programs that fall into the $76 billion include small loans, which accounted for $7.6 billion; green financing for $13 billion; student housing at $1.6 billion, and senior housing at just over $900 million.

Top Lender Roundup in 2020

The top producer for Fannie Mae in 2020 was Walker & Dunlop, LLC, totaling $11.4 billion in volume. Following was CBRE Multifamily Capital, Inc. ($6.8 billion); Berkadia Commercial Mortgage, LLC ($6.7 billion); PGIM Real Estate ($5.2 billion), and Newmark ($5.2 billion).

The last five on the list closed less than $5 billion in volume. In sixth place was Arbor Commercial Funding I, LLC ($4.8 billion); Wells Fargo Multifamily Capital ($4.7 billion); Greystone Servicing Company LLC ($4.7 billion); KeyBank National Association ($3.9 billion), and Capital One, National Association ($3.8 billion).

Some companies closed more for specific programs compared to others. The top producers for structured transactions were Walker & Dunlop, LLC, Newmark, PGIM Real Estate, KeyBank National Association, and Wells Fargo Multifamily Capital.

For multifamily affordable housing, Wells Fargo Multifamily Capital led the pack, followed by JLL Real Estate Capital, LLC; Walker & Dunlop, LLC; PGIM Real Estate, and KeyBank National Association.

Additional Top Lenders

In the small loans category, Arbor Commercial Funding I, LLC provided the most support, followed by Greystone Servicing Company LLC, Berkadia Commercial Mortgage, LLC, Walker & Dunlop, LLC, and Lument Capital.

For manufactured housing communities, it was Berkadia Commercial Mortgage, LLC out ahead, Walker & Dunlop, LLC trailing, then Wells Fargo Multifamily Capital, Bellwether Enterprise Real Estate Capital, LLC, and PNC Real Estate.

Support for green financing was led by CBRE Multifamily Capital, Inc., Walker & Dunlop, LLC, Greystone Servicing Company LLC, Berkadia Commercial Mortgage, LLC, and PGIM Real Estate.

Student and Senior Housing Top Supporters

Students:

Walker & Dunlop, LLC
CBRE Multifamily Capital, Inc.
Berkadia Commercial Mortgage, LLC
KeyBank National Association
NorthMarq

Seniors:

Newmark
KeyBank National Association
Greystone Servicing Company LLC
Lument Capital
PNC Real Estate

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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.