Fannie Mae Announces New Multifamily Product

MBA (8/1/2008 ) Murray, Michael
Fannie Mae said it will introduce a new streamlined rate-lock execution that will provide Delegated Underwriting and Servicing lenders with an earlier one-time rate lock than the current DUS Early Rate Lock.

Manny Menendez, vice president of multifamily product development at Fannie Mae, said various DUS ERL products now extend to 12 months but with certain prescribed underwriting conditions. In the new product, a borrower could lock a rate during any time in the underwriting process.

"Here, we are removing those prescriptions and delegating back to the lenders that decision to when their rate's a rate lock," Menendez said.

"We're seeing alot of interest in our Early Rate Lock product," more than doubling in the first half of the year, said said Heidi McKibben, vice president and head of multifamily production at Fannie Mae.

McKibben said Fannie Mae's multifamily DUS lenders produced $18.2 billion in volume during the first half of this year, including $1.5 billion in senior housing and $3 billion in structured transactions, up from $1.8 billion in the first half of 2007. With a nearly 30 percent increase for small loans during the first half of this year, Fannie Mae DUS lenders totaled $4.1 billion compared to $2.7 billion in the first half of 2007.

"We continue to see alot of interest in shorter term products as well," McKibben said.

McKibben said loans based on earning 60 percent or less Area Median Income totaled $617 million during the first half of the year. "Especially in this type of an economic environment, it is a critical part of our mission and an area of focus for us," she said.