In 2015 Fannie Mae provided financing for over 33,000 multifamily units totaling more that $1.6 billion. Ninety percent of the funds went towards the purchase of “small loan units” that support affordable and workforce housing. 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.
The five DUS lenders that produced the highest volume in small loans last year were Greystone Servicing Corporation Inc., Arbor Commercial Funding LLC, Walker & Dunlop LLC, Hunt Mortgage Group and PNC Real Estate. Fannie lenders are delegated the ability to underwrite, close, deliver, and service small loans. “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,” said Fannie Mae multifamily VP Bob Simpson. “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.”
