![]() These loans finance the acquisition or refinancing of commercial multifamily properties (e.g., apartment buildings with five or more units, housing for senior citizens, student housing, cooperatives, affordable housing, and manufactured housing).įannie Mae serves primary, secondary, and tertiary markets. ![]() Since 1987, Fannie Mae has been an active purchaser of multifamily mortgage loans. The charter for Fannie Mae, established by Congress in 1938, was expanded in 1984 when it formed its multifamily commercial lending business. The term "servicers" throughout this report refers to Fannie Mae Delegated Underwriting and Servicing (DUS) lenders. In addition to conducting a remote site visit meeting with servicing management, our review includes current and historical Servicer Evaluation Analytical Methodology data through June 30, 2020, as well as other supporting documentation provided by the company. government recently, we assume it will conduct business as usual for the foreseeable future. Although the future existence and role of Fannie Mae has been under discussion internally and externally within various levels of the U.S. We believe that the company will continue to serve as a fully capable master and special servicer for commercial mortgage loans with a multifamily focus. Management reported that there were no disruptions to the company's operations or data facilities. In March 2020, the company implemented its continuity plan due to the COVID-19 pandemic. The new content management system, MF DocWay, is projected to be complete for core transaction documents by 2022.įurthermore, Fannie Mae maintains a disaster recovery and business continuity plan, including response procedures to address operational disruption as a result of a pandemic event. A multi-year effort is underway to replace the current document imaging process and repository for all core loan documents.A new Robotics Process Automation (RPA) tool was implemented to automate data retrieval needed for payoff quotes.The respective employees assigned to these locations became remote off-site teleworkers. In 2020, the company closed its Atlanta and Los Angeles locations.Fannie Mae created a new relationship management team to maintain consistent messaging during the pandemic, which allows every Fannie Mae lender to have a dedicated point of contact to help with issues and questions.In Spring 2020, due to the pandemic, Fannie Mae added two new third-party vendors to support special servicing, as well as one specialized seniors housing asset management company to consult on higher risk senior housing deals.Following the 2019 departure of the director of portfolio and partner surveillance, his duties were reassigned to three directors in the asset management group.These duties were assumed by the VP of portfolio risk management who now heads both groups. In March 2020, the vice president (VP) of debt and equity asset management retired from the company.In January 2021, the FHFA and Treasury Department amended the preferred stock purchase agreement to include an $80 billion cap to be calculated in any 52-week period. In November 2020, the FHFA issued its annual Conservatorship Scorecard, which provides for a multifamily lending cap at $70 billion for Fannie Mae for 2021 at least 50.0% of that cap must include mission driven affordable multifamily acquisitions.In 2020, multifamily lending activity set a record at $76 billion (versus year-end 2019 lending of $70 billion, and year-end 2018 lending of $65 billion), including over $13 billion of green mortgage-backed securities.Since our prior review (see " Servicer Evaluation: Fannie Mae," published July 23, 2019), the following changes and developments have occurred: Continued position under the conservatorship of the Federal Housing Finance Agency (FHFA), and the conservatorship has an uncertain future.Continued financial support and implicit guarantee from the U.S.Historical low level of multifamily delinquencies.Lengthy track record of special servicing loan resolution activity, though it is predominately limited to the traditional multifamily product.Solid multifamily underwriting guidelines and servicer oversight, which benefit from a unique risk-sharing model.Comprehensive quality control and audit environment.Continued dedicated focus on the technology platform and applications, along with extensive data loss protection and oversight.Solid depth and breadth of management and staff, with significant industry experience and meaningful company tenure.20, 2021, we affirmed the rankings (see " Fannie Mae ABOVE AVERAGE Commercial Mortgage Loan Master And Special Servicer Rankings Affirmed Outlook Stable," published Jan. S&P Global Ratings' rankings on the Federal National Mortgage Association (Fannie Mae) are ABOVE AVERAGE as a commercial mortgage loan master and special servicer.
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