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Fannie Mae Reports Billions in Manufactured Home Community Deals, Details Others Lack

January 25th, 2019 Comments off

 

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In a release to the Daily Business News on MHProNews, Fannie Mae (OTCQB: FNMA) said that they have “provided more than $65 billion in financing to support the multifamily market in 2018 with its Delegated Underwriting and Servicing (DUS®) program. Fannie Mae continued to serve as a key source of liquidity by attracting a diverse investor base to purchase our DUS Mortgage-Backed Securities (MBS), while building a profitable and sustainable book of business.”

 

For more than 30 years, the DUS platform has brought stability to the multifamily market. Our innovative thinking is driving the industry forward and our commitment to serving our customers remains our top priority,” said Jeffery Hayward, Executive Vice President of Multifamily, Fannie Mae. “Our lender partnerships are also propelling Fannie Mae to be part of a global movement to transform rental housing to be healthier for residents and to help reduce energy and water consumption at the properties we finance.”

The Government Sponsored Enterprises (GSE) of Fannie Mae and Freddie Mac have both been given some latitude by the Federal Housing Finance Agency (FHFA)) for using certain qualifying loans on manufactured home communities as credits toward their Duty to Serve (DTS) requirements. Right or wrong, that use of DTS has been far more robust than it has toward single family manufactured home loans.

Fannie Mae was recognized in 2018 as the largest issuer of Green Bonds in the world, with more than $20 billion in Green MBS backed by either green certified properties or properties targeting a reduction in energy or water consumption. Fannie Mae increased its Green Financing portfolio to over $50 billion in 2018, driven by $20 billion in Green Financing. In 2018, Fannie Mae made LIHTC equity investment commitments towards meeting FHFA’s $500 million volume cap by deploying equity to rural and other underserved housing markets throughout the United States. Additionally, Fannie Mae led the affordable market with overall production of $7.4 billion, an increase of 9% from 2017,” stated their release to MHProNews.

Multifamily had another outstanding year in 2018, thanks to our lenders,” said Rob Levin, Senior Vice President for Multifamily Customer Engagement, Fannie Mae. “Together, we supported all market segments, bringing liquidity to the market, while building a balanced portfolio that reflects our strategy with strong credit quality and mission-rich business.”

The following list are the top 10 DUS Lenders produced the highest business volumes in 2018. Also listing that follows also includes the Top 5 Lender rankings for highest volumes in 2018 for Multifamily Affordable Housing, Small Loans, Green Financing, Seniors Housing, Structured Transactions, Manufactured Housing Communities, and Student Housing:

 

Top 10 DUS Producers in 2018             Volume ($Billion)

  1. Wells Fargo Multifamily Capital                      $8.1
  2. Walker & Dunlop, LLC                                    $6.9
  3. Berkadia Commercial Mortgage, LLC             $6.6
  4. CBRE Multifamily Capital, Inc.                        $6.1
  5. Newmark Knight Frank                                    $4.3
  6. Greystone Servicing Corporation, Inc.            $3.9
  7. Capital One, National Association                   $3.8
  8. KeyBank National Association                         $3.4
  9. PGIM Real Estate Finance                              $3.3
  10. Arbor Commercial Funding I, LLC                   $3.2

 

Top 5 DUS Producers for Multifamily Affordable Housing in 2018

  1. Wells Fargo Multifamily Capital
  2. CBRE Multifamily Capital, Inc.
  3. Greystone Servicing Corporation, Inc.
  4. PGIM Real Estate Finance
  5. Jones Lang LaSalle Multifamily, LLC

 

Top 5 DUS Producers for Small Loans in 2018*

  1. Greystone Servicing Corporation, Inc.
  2. Arbor Commercial Funding I, LLC
  3. Hunt Mortgage Group
  4. Walker & Dunlop, LLC
  5. Bellwether Enterprise Real Estate Capital, LLC

 

Top 5 DUS Producers for Green Financing in 2018

  1. Berkadia Commercial Mortgage, LLC
  2. Greystone Servicing Corporation, Inc.
  3. Arbor Commercial Funding I, LLC
  4. CBRE Multifamily Capital, Inc.
  5. Capital One, National Association

 

Top 5 DUS Producers for Seniors Housing in 2018

  1. Berkadia Commercial Mortgage, LLC
  2. Grandbridge Real Estate Capital, LLC
  3. Capital One, National Association
  4. CBRE Multifamily Capital, Inc.
  5. M&T Realty Capital Corporation

 

Top 5 DUS Producers for Structured Transactions in 2018

  1. Wells Fargo Multifamily Capital
  2. Newmark Knight Frank
  3. Walker & Dunlop, LLC
  4. PNC Real Estate
  5. Berkadia Commercial Mortgage, LLC

 

Top 5 DUS Producers for Manufactured Housing Communities in 2018

  1. Walker & Dunlop, LLC
  2. Wells Fargo Multifamily Capital
  3. KeyBank National Association
  4. Berkadia Commercial Mortgage, LLC
  5. Capital One, National Association

 

Top 5 DUS Producers for Student Housing in 2018

  1. Wells Fargo Multifamily Capital
  2. Walker & Dunlop, LLC
  3. CBRE Multifamily Capital, Inc.
  4. PGIM Real Estate Finance
  5. KeyBank National Association

 

Listed below are 2018 production highlights for individual business categories, which are included in the total multifamily production number.

  • Affordable Housing – $7.4 billion comprised of $6.0 billion in Multifamily Affordable Housing (for rent-restricted properties and properties receiving other federal and state subsidies), an increase of 10 percent from $5.4 billion in 2017; and $1.4 billion for properties with rent restrictions between 60 percent and 80 percent AMI, in line with $1.4 billion in 2017
  • Small Loans* – $2.2 billion
  • Green Financing – $20.1 billion (properties with Green Building Certifications or loans targeting a 25 percent reduction or more in energy or water consumption)
  • Student Housing – $2.7 billion
  • Structured Transactions – $9.5 billion
  • Seniors Housing – $2.3 billion
  • Manufactured Housing Communities – $2.9 billion, an increase of 56 percent from $1.9 billion in 2017

Footnotes:

*Small Loans are defined as loans of $3 million or less nationwide and $5 million or less in high-cost markets, and typically finance multifamily properties with five to 50 units.

**Due to rounding, amounts reported may not add up to overall totals.

The above is insightful on several levels.  First, note that more than one of those manufactured home community DUS lenders has ties to Berkshire Hathaway.

Next, is that this is arguably part of the give-take mechanism that Arlington, VA based Manufactured Housing Institute (MHI) has used to get some of their community members in the National Community Council (NCC) to swallow and ignore the single-family chattel lending that the Manufactured Housing Association for Regulatory Reform (MHARR) has stressed should be at the core of DTS by the GSEs.

 

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It also brings back into focus what some in manufactured housing call the “sell-out” or “betrayal” of the industry’s independent producers of manufactured homes. How so?  Consider this from Fannie Mae’s own site, which stresses their ‘support’ for manufactured housing as:

  1. A) The Multifamily Manufactured Housing Communities Market . …
  2. B) Develop an enhanced manufactured housing loanproduct for quality manufactured (homes)…

It must not be forgotten that MHI leaders held closed door meetings with Fannie and Freddie, to which none of the parties have released the meeting minutes, that ultimately resulted in the “new class of homes” program that has emerged…

…and so far has landed with a thud.  While Fannie and Freddie are both mum on specifics, the new HUD Code manufactured home shipments data is all the proof that is needed.  That data, combined with anecdotal information from various sources have made it clear that little has occurred from the new class of homes, other than noise from MHI, their allies, and Omaha-Knoxville puppet masters.

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MHI CEO Dick Jennison’s Pledge – 500,000 New Manufactured Home Shipments

GSEs’ “Duty To Serve Underserved Markets” Plans

Midwest Manufactured Housing Federation Official Louisville Show Communique to MHProNews

 

Independent National Manufactured Housing Post-Production Association Takes Major Step

Production Decline Continues in November 2018

 

 

 

 

 

 

New York Times on CFPB – Manufactured Homes Crucial to Affordable Housing

October 22nd, 2014 Comments off

cfpb_credit_cfpb The New York Times ‘ recent article on the MH/CFPB issue states that manufactured homes have become a crucial source of affordable housing in the South, West and northern New England, according to the Consumer Financial Protection Bureau’s (CFPB) report last month, with prices of less than half the $94 per square foot national average for a site-built home.   A single-section manufactured home can sell brand new for $43,000.

However, in all states except New Hampshire, manufactured home buyers cannot qualify for mortgage financing if they do not own the land beneath their homes, pushing them into personal property loans. These are also called “chattel loans,” which according to the CFPB, averaged an interest rate of 6.79 percent in 2012 as opposed to 3.6 to 4.2 percent for a 30-year fixed rate conventional mortgage. Doug Ryan of the Corporation for Enterprise Development (CFED) says MH buyers with poor credit often end up paying ten percent interest.

Most lenders stay clear of MH loans because they are often smaller than site-built home loans, but the costs are relatively more, making them not as attractive a lending investment.

As a result, concentration of MH lending rests primarily with a handful of large companies including two that are part of Berkshire Hathaway: 21st Mortgage Corporation, and Vanderbilt Mortgage and Finance. Tim Williams, CEO of 21st Mortgage says the higher interest rates cover a higher proportionate servicing rate and higher cost of funds, according to The New York Times.

Ryan says his organization is calling for more involvement of Fannie Mae and Freddie Mac in the secondary market for manufactured housing which would attract more lenders.  On this point, as MHProNews  knows, the industry would largely agree.

For years, as  long time MHProNews  readers know, the industry has attempted to explain that the issues relating to lending rates are due in part to simple business math plus a lack of a secondary market, which the so-called Duty to Serve (DTS) in the Housing and Economic Recovery Act (HERA 2008) was supposed to address through mandates for the Government Sponsored Enterprises (GSEs).

In spite of the DTS in HERA 2008 requirements, when the GSEs went into receivership under the FHFA, access to the secondary market remainded ellusive, even though the economic meltdown was driven by problems in the conventional housing market, not manufactured housing.

What the CFPB report has failed to address are differences between how its facts where presented, versus those published by the Government Accounting Office (GAO) report last summer.

How this impacts consumers has been covered by Manufactured Home Living News, which pointed out recently that even with higher rates, lower MH prices still yields lower payments on manufactured homes, per the GAO study and an earlier report by Fannie Mae, see this link here.

The Manufactured Housing Institute (MHI) weighed in on these topics, for example, see this link here.##

(Image credit: Consumer Financial Protection Bureau logo)

matthew-silver-daily-business-news-mhpronews-com(Submitted by Matthew J. Silver to the Daily Business News-MHProNews)

Multifamily Conference to Attract 2,000 Professionals

September 23rd, 2014 Comments off

multifamily modular   jackson green  in jersey city  GRO architects   creditThe RealShare Conference Series is sponsoring a RealShare Apartments conference of 2,000 multifamily professionals in Los Angeles, October 15-16, 2014, according to globest.com. The following presenters at the conference represent companies that have all been involved in the manufactured housing industry: John Sebree, Vice president of Marcus & Millichap. Laurie-Lustig Bauer is executive vice president of CBRE, and Brian Eisendrath and Tyler Anderson are Vice Chairman of CBRE. Jeff Burns, senior vice president at Walker & Dunlop, and Scott Croul, Managing Director of Production and Sales at Freddie Mac. MHProNews understands the agenda for the numerous presenters does not include modular housing. ##

(Image credit: GRO Architects–Jackson Green modular community in Jersey City, NJ)

Loans Moving from FHA to Fannie and Freddie; Freddie Inaugurates MHC Loan

September 11th, 2014 Comments off

mortgage    andyenstallblog  creditDonald Salmon of TBI Mortgage says private investors are beginning to buy mortgages written just for self-employed borrowers who put down 30 percent and have good credit scores. Instead of looking at paychecks, they examine a twelve-month bank statement to determine if the borrower can afford the home, nationalmortgagenews.com reports. “These types of loans made to high-net-worth borrowers with freddie mac  globest   creditexcellent credit, significant equity in the property, and substantial reserves is not new, but has been limited,” according to Michele Patterson of Kroll Bond Rating Agency.

On the other hand, Larry Sorsby of Hovnanian Enterprises decries the drop in Federal Housing Administration (FHA) loans due to increases in mortgage insurance costs, especially since the Great Recession. The first nine months of the government’s fiscal year, which ended June 30, saw originations of 566,500 FHA-backed loans, a drop of 47 percent from the same period of 2013. Says Sorsby: “Borrowers have switched away from FHA loans to more affordable Fannie Mae and Freddie Mac loans.” As Daily Business News posted Aug. 29, 2014, the Freddie Mac manufactured housing community finance program was inaugurated by Walker & Dunlop: $10.5 million for Longhaven Estates MHC in Arizona. ##

(Image credit: top left, andyenstallblog.com; bottom, globest.com–Freddie Mac headquarters)

Freddie Mac’s new Manufactured Housing finance program orignated by Walker & Dunlop

August 29th, 2014 3 comments

freddie-mac-globest-credit-posted-daily-business-news-mhpronews-com-The new Freddie Mac manufactured housing community (MHC) finance program announced last spring has been originated by Walker & Dunlop (W&D). The loan was for $10.5 million on Longhaven Estates, an MHC in Phoenix, AZ. The financing was secured for Cobblestone Real Estate, LLC, based in Oak Brook, IL, and Tricon Capital Group, based in Toronto, Canada, GlobeStreet tells MHProNews.

Senior Vice-President Will Baker’s team structured financing. Baker said that when Cobblestone and Tricon approached W&D with the deal, “We immediately knew it would be a perfect inaugural deal for Freddie Mac.”

As the Daily Business News reported after the program was first announced, John Cannon, Senior Vice-President of Freddie Mac’s multifamily division said,“It [the new MHC financing program] broadens our geographic footprint and creates a more balanced approach.”

Freddie Mac has stated they believe manufactured housing is important in providing affordable housing. This loan, experts say, demolong-haven-estates-credit-senior-retirement-living-posted-manufactured-housing-daily-business-news1-mhpronewscom-nstrates their commitment to the MHC sector. ##

(Photo credits: GlobeSt, Senior Retirement Living)

 

Stocks Close Higher Mid-Week

February 16th, 2011 Comments off
Wall Street spent hump day higher, adding more than 60 points to close at 12,288. Gainers in the manufactured housing arena include Cavco and Skyline Corporation, each adding some five percent for shareholders. Walker & Dunlop and Drew Industries also closed higher. The Manufactured Housing Composite Value closed higher by more than four percent.

Stocks Begin Week in the Green

January 31st, 2011 Comments off
Stocks moved up nearly 70 points on the last day in January after unrest in Egypt sent shivers through markets on Friday. Analysts say investors instead focused on the positive earnings news out of Exxon Mobil and rising commodity prices. Several manufactured housing and related stocks also logged gains. Most notably Walker & Dunlop, which provides financing for manufactured housing communities, rose to $12 a share, up from its $10 public offering in December. Sun Communities, Skyline Corporation, Drew Industries and Equity Lifestyle Properties also closed higher. The Manufactured Housing Composite Value was off eight tenths of one percent.

MH Industry Again Cited as Worst Performing

January 13th, 2011 Comments off
The Dow closed down 28 points Thursday ahead of several corporate earnings reports. The Manufactured Housing Composite Value was down another 2.6 percent Thursday after a disappointing performance Wednesday. On January 12, the website Benzinga again called out the manufactured housing industry as one of the worst performing, citing a 3.5 percent drop, with declines by Cavco and Skyline exceeding that.  Both companies were down around three additional percentage points Thursday. Closing higher were Global Diversified Industries, UMH Properties and Walker & Dunlop.

MH Stocks Gain on First Day of Trading in New Year

January 3rd, 2011 Comments off

Stocks roared into the New Year Monday as 98 points were added to the Dow. The index had been up more than 120 points earlier in the session. Manufactured housing and related stocks also performed well. UMH Properties and Drew Industries each added more than four percent, Sun Communities added more than two percent, while Barnes Group, Cavco, Equity Lifestyle Properties, and Skyline Corp each added more than one percent to share value. Deer Valley, Walker and Dunlop and All American Group closed down. The Manufactured Housing Composite Value added half of one percent.

Dow Gains, MH Stocks Decline

December 28th, 2010 Comments off
The Manufactured Housing Composite Value moved down modestly Tuesday after two days of gains. Most manufactured housing and related stocks closed lower. The exceptions were Cavco and UMH Properties, which posted modest gains. Walker and Dunlop, a company that helps finance the purchase of manufactured housing communities, posted gains Wednesday, moving slowly back toward its $10.00 share price established at the initial public offering December 15. The stock is currently trading at $9.90 a share. The Dow gained 20 points.