Fannie sets multifamily record as Wells pulls back, others step up

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Fannie Mae's multifamily volume hit another record high of $67 billion in 2017 as former top producer Wells Fargo nearly halved its volume and nonbank competitors increased their market share.

"We want to thank our DUS lender partners for an extraordinary 2017. Together, we supported all segments of the multifamily market and broke records in green financing, structured transactions, seniors housing and multifamily affordable housing,” said Woody Brewer, vice president of customer engagement at Fannie Mae, in a press release. "I am very excited about the success we’ve had in transforming the market and making green financing the new standard in multifamily."

Walker & Dunlop led Fannie multifamily lenders in 2017 with more than $9 billion in production, moving up from No. 2 in 2016, when the agency's production totaled $55.3 billion.

Berkadia Commercial Mortgage ranked No. 2 with $8 billion, up from just over $4 billion the previous year. Wells Fargo's volume fell to $5.2 billion from $11.7 billion, making it the third largest Fannie Mae multifamily lender for 2017.

Wells' volume at Fannie dropped because it sold more of its production to Freddie Mac last year and typically shifts the amount it sells to either agency over time, said spokesperson Beth Richek.

"The overall volume with Fannie and Freddie remains consistent year-over-year," she said.

Freddie Mac's multifamily production volume totaled $73.2 billion in 2017, up from $56.8 billion the previous year, but it has not yet released volume breakouts for its top lenders.

In the larger market, multifamily housing starts are stabilizing, and forecasts for multifamily loan production call for more moderate growth in 2018.

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Multifamily Originations GSEs Nonbank Fannie Mae Freddie Mac Wells Fargo