The Top Fannie Mae DUS Lenders of 2021 Included Walker and Dunlop, CBRE, and Berkadia
Fannie Mae originated nearly $70 billion of multifamily loans in 2021, most of them through its delegated underwriting and servicing (DUS) program. Founded in 1988, the Fannie Mae DUS loan program allows specially approved lenders to underwrite, close, and sell multifamily loans to Fannie Mae without prior Fannie Mae review. DUS lenders generally retain around one-third of the risk in the loan in order to ensure that they have skin in the game. As of 2022, there are currently 23 Fannie Mae DUS lenders in operation.
In addition to financing traditional, market-rate multifamily properties, in 2021, Fannie Mae DUS lenders funded $11 billion in affordable housing loans, including $9.6 billion for subsidized properties, and $1.4 billion for properties with rent restrictions between 60% and 80% of the area median income (AMI). Fannie Mae DUS lenders also funded $800 million in Seniors Housing Loans, $900 in Student Housing Loans, $3.3 billion in Manufactured Housing Comunity Loans, and $5.4 billion in Fannie Mae Small Loans.
The top Fannie Mae DUS lenders of 2021 included Walker & Dunlop, CBRE, Berkadia, Wells-Fargo, Newmark, Greystone, JLL, Arbor, Capital One, and Keybank. In this article, we'll review a bit about each of these DUS lenders and how they contributed to Fannie Mae's multifamily financing objectives.
1. Walker & Dunlop, LLC: $9.6 Billion
Walker & Dunlop, Inc., was the largest Fannie Mae DUS lender of 2021, having originated $9.6 billion in Fannie Mae Multifamily loans. In addition to originating more than $9 billion in Fannie Mae multifamily loans in 2021, the company also originated $6.3 billion in Freddie Mac multifamily loans, ranking number four on Freddie Mac's 2021 Top Lender List. The company also originates HUD multifamily loans, and as of 2020, was the fourth largest HUD multifamily servicer in the country and the fifth-largest lender in terms of HUD multifamily firm commitment volume.
Walker and Dunlop currently services a portfolio of $107.2 billion in commercial loans. In addition lending and servicing, the company offers a wide variety of services include investment sales, investment management, asset management, and appraisals. Walker and Dunlop is a publicly-traded company and is currently listed on the S&P 600. The company reported $346.3 million in total revenues in Q3 2021 a 40% year over year increase. Walker and Dunlop is currently lead by chairman and CEO Willy Walker.
2. CBRE Multifamily Capital, Inc.: $6.8 Billion
CBRE Multifamily Capital ranked second on the list of largest DUS lenders of 2021, originating nearly $7 billion of Fannie Mae multifamily loans. CBRE also ranked second on the list of top Freddie Mac multifamily lenders of 2021, originating $9.2 billion in Freddie Mac multifamily loans. In addition to originating Fannie Mae and Freddie Mac multifamily loans, CBRE also provides CMBS, HUD multifamily, and private equity real estate financing to a diverse array of clients.
CBRE is currently the world's largest commercial real estate services and investment firm, and as such, offers a wide scope of services including property and investment management, real estate development consulting, and leasing and appraisal services, among many others. CBRE announced 2020 revenues of $23.8 billion and currently has more than 100,000 employees. The company is also a member of the Fortune 500, ranking #122 in 2021. CBRE's headquarters are located Los Angeles, California, and the company is currently led by CEO Robert Sulentic.
3. Berkadia Commercial Mortgage, LLC: $6.6 Billion
Berkadia Commercial Mortgage ranked third on the list of largest DUS lenders of 2021, also originating nearly $7 billion of Fannie Mae multifamily loans. Like many other lenders on this list, Berkadia also ranked on the list of top Freddie Mac multifamily lenders of 2021, scoring the number one spot with an impressive $10.5 billion in Freddie Mac multifamily loan originations. Berkadia Commercial Mortgage was founded as a 50/50 venture between the financial giants Jeffries and Berkshire Hathaway. In addition, Berkadia was also ranked as the third-largest HUD multifamily lender of 2021.
In addition to traditional multifamily financing, Berkadia also specializes in financing property types including senior living and healthcare, hotels and hospitality properties, manufactured housing, and affordable housing. Other commercial real estate services provided by the firm include investment sales and land services. Berkadia Commercial Mortgage is headquartered in New York City and is currently headed by CEO Justin Wheeler.
4. Wells Fargo Multifamily Capital: $4.4 Billion
Wells Fargo Multifamily Capital originated $4.4 billion of Fannie Mae multifamily loans in 2021, ranking fourth on the list of top DUS lenders. In addition, it ranked number one for DUS affordable housing lenders. In addition to originating multifamily loans for Fannie Mae company also originated $3.2 billion in Freddie Mac multifamily loans, and like many other lenders on this list, is also a HUD/FHA multifamily lender for both multifamily and healthcare properties.
In addition to agency and HUD financing, Wells Fargo also provides a wide array of balance sheet financing options, including term, bridge, and mezzanine debt, forward commitments, and direct bond purchases. It also advises clients on CMBS, CRE CLOs, corporate finance, and treasury management, among a variety of other advisory services.
Wells Fargo is currently the world's fourth-largest bank by market capitalization, with approximately $1.8 trillion in assets. In Q4 2021, the company reported revenues of $20.86 billion and a net income of $5.75 billion. Wells-Fargo is headquartered in San Francisco, California, and is currently headed by CEO C. Charles W. Scharf.
5. Newmark: $4.4 Billion
Like Wells Fargo, Newmark also originated $4.4 billion of Fannie Mae multifamily loans in 2021, ranking fifth on the list of top DUS lenders. Newmark also ranked number three on Fannie Mae's list of top Seniors Housing producers for 2021. In addition to agency loans, the company originates the full suite of HUD multifamily loan products, including HUD 221(d)(4), HUD 223(f), HUD 220, and HUD 202 loans.
Newmark, which was previously known as Newmark Knight Frank until being renamed in October 2020, provides a variety of diversified commercial real estate services, including affordable housing and tax credit advisory services, appraisal and valuation services, investment sales, leasing advisory services, and facilities and property management services. Newmark Knight Frank is headquartered in New York City and is currently headed by CEO Barry M. Gosin.
6. Greystone Servicing Company, LLC: $4.3 Billion
Greystone originated 4.3 billion in Fannie Mae DUS loans in 2021, placing it number six on this list. In addition to originating a sizeable volume of Fannie Mae multifamily loans, Greystone also originated $3.1 billion in Freddie Mac multifamily loans, placing it number nine on Freddie Mac's top lender list for 2021. In addition to agency lending, Greystone is highly active in CMBS financing and has a strong bridge and mezzanine financing practice.
Greystone also participates directly in multifamily investing as a general partner of America First Multifamily Investors, L.P. (Nasdaq: ATAX). The company also offers investment sales and structured finance services, and currently has a primary and special servicing portfolio of $84.1 billion. Greystone is headquartered in New York City and is currently led by CEO Stephen Rosenberg.
7. JLL Real Estate Capital, LLC: $4.3 Billion
Like Greystone, JLL Real Estate Capital originated $4.3 billion in Fannie Mae DUS loans in 2021, placing it number seven on this list. JLL was also a top Freddie Mac multifamily lender in 2021, originating $7.3 billion in Freddie mac multifamily financing, placing it number three on Freddie Mac's list of top Optigo lenders for that year. In addition to agency lending, JLL offers a wide array of commercial real estate services, including investment sales, loan sales, leasing services, property marketing, property management services, appraisal services, and real estate investment banking services for real estate mergers and acquisitions.
JLL is a publically traded company and a member of the Fortune 500. In 2020, the firm reported earnings of $16.6 billion. JLL is currently led by CEO Christian Ulbrich and is headquartered in Chicago.
8. Arbor Commercial Funding I, LLC: $3.7 Billion
In 2021, Arbor Commercial Funding originated $3.7 billion in Fannie Mae DUS loans, placing it eighth on this list. Arbor was also ranked number one on Fannie Mae's list of small multifamily lenders for 2021. In addition to originating Fannie Mae multifamily loans, Arbor is an FHA Multifamily Accelerated Processing (MAP) lender, and currently has a loan servicing portfolio of $8.4 billion. The company also originates CMBS and private label loans and has significant experience in both green and affordable housing finance.
Arbor also manages Arbor Realty Trust, Inc., a real estate investment trust, (REIT), which invests in mortgage-related securities, bridge loans, second position loans, mezzanine loans, preferred and direct equity investments, and discounted mortgage notes. Arbor is headquartered in New York City and is currently led by CEO Ivan Kaufman.
9. Capital One, National Association: $3.7 Billion
Like Arbor, Capital One originated $3.7 billion in Fannie Mae DUS loans in 2021, placing it ninth on this list. In addition to originating Fannie Mae multifamily loans, Capital One originated $4.8 billion of Freddie Mac multifamily loans in 2021, placing it fifth on Freddie Mac's list of top Optigo multifamily lenders for that year. Capital One is also a HUD multifamily accelerated processing (MAP) and HUD LEAN lender.
Capital One is currently ranked as the ninth-largest bank in the United States, with approximate assets of $320 billion. Capital one is currently led by CEO Richard Fairbank and is headquartered in McLean, Virginia.
10. KeyBank National Association: $3.6 Billion
KeyBank originated $3.6 billion in Fannie Mae DUS loans in 2021, placing it last on the list of top ten DUS lenders. Keybank also ranked number two on the list of top Fannie Mae multifamily manufactured housing community lenders of 2021. In addition to financing Fannie Mae DUS loans, KeyBank also provides Freddie Mac multifamily financing, having originated $3.4 billion in Freddie Mac multifamily loans in 2021, placing it number seven on their list of top 10 lenders.
In 2021, KeyBank was ranked as the 20th largest bank in the United States, with more than $183 billion in assets. KeyBank is currently led by CEO Chris Gorman and is headquartered in Cleaveland, Ohio.