Fannie Mae Reveals Top Multi-Family Lenders

May 5, 2011
By Barbra Murray, Contributing Editor

Courtesy Flickr Creative Commons user stevendepolo

Fannie Mae has released the list of its top multi-family loan originators through its delegated underwriting and servicing program for 2010, which turned out to be a good year. Performance hit a higher level in 2010, with the 10 lender partners each contributing a minimum of $870 million in loan volume, compared to 2009’s minimum of $700 million.

Through its 23-year-old DUS program, Fannie Mae and its lender partners facilitate financing across the multifamily sector, although, approximately 91 percent of the residential units are designated as affordable housing. Wells Fargo Bank N.A. took the number one spot on the government-sponsored enterprise’s 2010 list of leading originators, with DB Mortgage Services L.L.C. and Walker & Dunlop L.L.C. coming in at number two and three, respectively.

“Multi-family fundamentals have come back a little stronger and a little quicker than most commercial real estate property types,” Jeff Burns, senior vice president with Walker & Dunlop, told CPE. “The existence of Fannie Mae and Freddie Mac has been a boon for multi-family owners in their ability to provide financing throughout the economic downturn. They have allowed multi-family to avoid losses that have plagued other sectors, like office and retail, in recent years.”

Following Walker & Dunlop on the list are CBRE Multifamily Capital Inc., PNC Bank National Associations, Arbor Commercial Funding L.L.C., and Prudential Multifamily Mortgage Inc. And rounding out the group are CWCapital L.L.C., M&T Realty Capital Corp. and Greystone Servicing Corp. Inc.

Together, Fannie Mae and the lenders in 2010’s leading loan origination positions made $16.9 billion in debt financing available for the apartment market through approximately 2,300 multi-family mortgage loans involving 306,000 rental units. Walker & Dunlop’s contribution last year included a $45.6 million loan on The Presidio, a 432-unit, garden-style apartment complex in Fremont, Calif.; and a $28 million acquisition loan for the 328-unit Century Legacy Village, a Class A rental community in Plano, Tex.

“We have had a little over two years as a fully integrated Fannie Mae/Freddie Mac lender after Walker & Dunlop acquired certain assets from Column Guaranteed L.L.C. to still be a nimble, non-bank owned multi-family lender combined with a national platform,” Burns noted. “The success of that combination is reflected in Fannie Mae’s national top 10 list of multi-family loan originators.”

Walker & Dunlop advanced from fifth on the list in 2009 to third in 2010. And there may very well be ample opportunity for many lenders to move closer to the number one position in 2011. “Fannie Mae and Freddie Mac are starting to lend more aggressively as they see NOIs stabilize and even grow in some markets,” he said. ” While some capital sources are starting to come back to the market, Fannie Mae and Freddie Mac still provide the most leverage at the lowest fixed rates for most property owners.”