While Fannie Mae’s multifamily origination volume took a step back from 2017’s record high of $67 billion, its delegated underwriting and servicing program provided $65 billion in financing in 2018, led by Wells Fargo.
“For more than 30 years, the DUS platform has brought stability to the multifamily market. Our innovative thinking is driving the industry forward and our commitment to serving our customers remains our top priority,” Jeffery Hayward, Fannie Mae’s executive vice president of multifamily, said in a press release.
After falling to third place the year prior, Wells Fargo reclaimed its hold as Fannie’s top multifamily lender with $8.1 billion in volume. It leapfrogged last year’s leader, Walker Dunlop, whose production of $6.9 billion put the real estate financier in second place. Berkadia Commercial Mortgage also fell one spot to third in 2018, producing $6.6 billion.
“Our lender partnerships are also propelling Fannie Mae to be part of a global movement to transform rental housing to be healthier for residents and to help reduce energy and water consumption at the properties we finance,” said Hayward.
Comparatively, Freddie Mac set a new record for multifamily production volume with $77.5 billion in 2018, up from $73.2 billion the previous year. Freddie has not yet released volume breakouts by its top lenders.
“Multifamily had another outstanding year in 2018, thanks to our lenders,” said Rob Levin, Fannie Mae’s senior vice president for multifamily customer engagement. “Together, we supported all market segments, bringing liquidity to the market, while building a balanced portfolio that reflects our strategy with strong credit quality and mission-rich business.”
While volume was strong for multifamily originations in 2018, the coming year is expected to bring growth.