Fannie Mae Concludes 2024 with Over $55 Billion in Multifamily Financing

Fannie Mae's Significant Impact on the Multifamily Market in 2024

Fannie Mae, renowned for its pivotal role in the U.S. housing market, revealed its impressive achievement of exceeding $55 billion in financing for multifamily properties throughout 2024. This figure underscores the company's commitment to enhancing the stability and accessibility of affordable rental housing across the nation.

In a year marked by challenges, Fannie Mae leveraged its extensive network of Delegated Underwriting and Servicing (DUS®) lending partners to provide essential support to multifamily borrowers. The company expanded its array of innovative products while enhancing underwriting processes, ensuring that the various needs of the multifamily sector were met. Among the highlights of its lending activities, Fannie Mae allocated over $6.3 billion towards Multifamily Affordable Housing initiatives, alongside significant investments in small loans, manufactured housing, and structured transactions, contributing a massive $4.7 billion, $1.3 billion, and $6.6 billion, respectively.

Notably, Fannie Mae witnessed a remarkable 101% surge in its Green Financing loans, jumping from $7.5 billion in 2023 to $15.1 billion in 2024. This growth emphasizes the company's dedication to environmentally sustainable investments and its goal to reduce carbon footprints in the housing sector. Additionally, forward commitments rose dramatically to $1.2 billion, a significant increase from the previous year’s $326 million, facilitating new developments and rehabilitations of essential affordable housing.

Fannie Mae's endeavors since re-entering the Low-Income Housing Tax Credit (LIHTC) market in 2018 have resulted in an investment of nearly $4 billion in net equity. This investment supports the creation and preservation of thousands of affordable rental units, thereby enhancing community welfare across the United States. In 2024, their initiatives focusing on Sponsor-Dedicated Workforce (SDW) and Sponsor-Initiated Affordability (SIA) advanced even further, offering financing mechanisms aimed at boosting both workforce and affordable housing availability.

The 2024 Expanded Housing Choice pilot initiative, aimed at increasing rental opportunities for Housing Choice Voucher holders, further exemplifies Fannie Mae's proactive measures to promote inclusivity in housing solutions. Rob Levin, Senior Vice President and Multifamily Chief Customer Officer, remarked, "With the unwavering commitment and support from our DUS lenders, Fannie Mae has solidified its standing as a stable source of multifamily mortgage financing nationwide, even amidst market challenges."

The support and feedback from collaboration with partners were instrumental throughout the year, resulting in a strong finish for 2024 and setting a robust foundation for new opportunities in 2025.

Fannie Mae's 2024 accomplishments also highlighted the top 10 DUS lenders that generated the highest business volumes in collaboration with the corporation. Leading the pack was Walker Dunlop, LLC with $7.04 billion followed closely by Berkadia Commercial Mortgage, LLC at $6.25 billion and CBRE Multifamily Capital, Inc. with $6.17 billion. This collaboration showcases a strong network that is essential for the ongoing development of the multifamily housing sector.

In summary, Fannie Mae's remarkable financing volume in 2024 not only highlights its integral role in supporting the multifamily market but also reflects its dedication to fostering affordable housing initiatives and promoting sustainable growth within the housing sector. By continuing to adapt to market needs and prioritizing innovative solutions, Fannie Mae aims to ensure a brighter future for renters and housing across the country.