Fannie Unveils DUS-Plus

Fannie Mae has introduced a DUS-plus program that allows the use of mezzanine financing in conjunction with its regular delegated underwriting and servicing program.Under the new program, DUS lenders will have the ability to offer additional mezzanine financing for Fannie Mae fixed-rate DUS loans between $3 million and $25 million. RCG Longview, a New York City-based real estate fund manager, said it will purchase the DUS-plus mezzanine loans "on an exclusive basis" from Fannie Mae. The new program, which will provide "one-stop shopping" for the acquisition or refinancing of multifamily properties, offers a combined loan-to-value ratio of up to 85% and requires a minimum debt service coverage ratio of 1.1 times, according to RCG. A spokeswoman for Freddie Mac told MortgageWire that Freddie Mac is coming out with a similar product very soon.