Fannie Mae Financed $1.6B in Multifamily Small Loan Market in 2015
Of the loans, 90 percent supported affordable and workforce housing.
Washington, D.C.— Fannie Mae provided $1.6 billion in financing to the multifamily market to support small loans comprising over 33,000 units in 2015, with 90 percent of the small loan units supporting affordable and workforce housing.
“Small loans are a critical part of the work we do to make affordable, quality rental housing a reality for renters in urban areas and smaller markets across the nation,” Bob Simpson, Fannie Mae’s multifamily vice president for affordable, green, and small loans, said. “We have been financing small loans for nearly 20 years and since 2009 we have provided over $17 billion in liquidity to the small loan market primarily through our Delegated Underwriting and Servicing (DUS) lenders.”
The five DUS lenders that produced the highest volume in small loans last year included
Greystone Servicing Corporation Inc., Arbor Commercial Funding LLC, Walker & Dunlop LLC, Hunt Mortgage Group and PNC Real Estate.
According to Fannie Mae regulations, small loans are defined as loans of $3 million or less nationwide and $5 million or less in high-cost markets, as well as properties with five to 50 units. Affordable and workforce housing is defined as units affordable to families earning at or below 120 percent of the median income in their area.
Owners of smaller properties have unique financing needs and Fannie Mae offers a variety of product offerings, streamlined underwriting and processing, and increased delegations to its small loan lenders. Fannie lenders are delegated the ability to underwrite, close, deliver, and service small loans, which provides greater speed and certainty of execution.