Fannie Mae, Freddie Mac Set Multifamily Volume Records

Michael Tucker mtucker@mba.org

February 23, 2017
Fannie Mae, Washington, D.C., and Freddie Mac, McLean, Va., finished 2016 with more than $112 billion in combined multifamily volume.

Freddie Mac financed $56.8 billion in loan purchases and bond guarantees in 2016, its highest figure ever. Fannie Mae provided $55.3 billion in multifamily financing, also a record for the GSE.

In 2015 Fannie Mae reported $42.3 billion in volume compared to Freddie Mac’s $47.3 billion volume for a total of $89.6 billion. The two GSEs finished 2014 with just over $57 billion in combined multifamily volume.

Freddie Mac said it securitized a record $51.2 billion in K Certificates and Small Balance Certificates plus an additional $1 billion in 55-Day Participation Certificates and Q Certificates. Securitization transfers credit risk to other parties.

“We can provide continuous financing for affordable rental housing in a safe and sound manner because we transfer the vast majority of credit risk to private investors,” said Freddie Mac Multifamily Executive Vice President David Brickman. He noted that Freddie Mac is currently developing new risk-transfer vehicles.

Fannie Mae issued $54.9 billion in mortgage-backed securities last year and provided additional liquidity to the market with more than $10 billion in Guaranteed Multifamily Structures securities.

Fannie Mae Multifamily Executive Vice President Jeffery Hayward said its Delegated Underwriting and Servicing risk-sharing model “allows us to leverage lender delegation to do more business with greater certainty of execution, providing borrowers with faster decisions and quicker loan closings. Inherent in this model is a reliance on strong partnerships from borrower to lender to Fannie Mae to investor–and everyone has a vested interest to succeed.”

Hayward said the largest Fannie Mae DUS lenders include Wells Fargo Multifamily Capital, Walker & Dunlop LLC, CBRE Multifamily Capital and Berkadia Commercial Mortgage.

Freddie Mac Multifamily’s largest seller-servicer partners include Berkadia Commercial Mortgage, CBRE Capital Markets, Walker & Dunlop LLC and Capital One Multifamily Finance.

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