Fannie Mae did $24 billion of multi-family mortgages last year, of which 98% were put into MBS. The leading Delegated Underwriting and Servicing (DUS) program originator was Wells Fargo Bank.
Its top 11 DUS producers did a minimum of $1 billion each in 2011. The remaining lenders in the top five were: Walker & Dunlop; Beech Street Capital; Deutsche Bank Berkshire Mortgage (soon to be Berkeley Point Capital); and PNC Bank.
As part of that $24 billion total (which funded 2,763 mortgage loans), multifamily affordable housing, which provides financing for rent-restricted properties and properties receiving other federal and state subsidies, accounted for $2.3 billion, an increase of 282% compared with 2010.
In addition, seniors housing loans totaled $1.4 billion, an increase of 121% over 2010, while loans secured by manufactured housing communities were $535 million, essentially the same as in 2010.
In other GSE multifamily news, Freddie Mac multifamily volume jumped by 32%. The GSE saw its 2011 multi-family volume increase by 32% over 2010 to more than $20 billion. Of that total, $16.5 billion, or 81%, of new purchase volume was through the Capital Markets Execution (CME) program – the largest annual volume amount to date.
Freddie securitized $13.7 billion in CME mortgages in 12 K Certificate transactions, guaranteeing $12 billion of the Series A certificates.
The delinquency rate in its multi-family portfolio was 22 basis points at year-end 2011.
David Brickman, senior vice president of Freddie Mac Multifamily, said, "Looking ahead, we expect robust growth in the multifamily market. The outlook is very positive due to solid fundamentals, demographics, low interest rates and strong capital flows into the sector."