$10 Billion In Fannie Mae Multifamily Mortgage- Funding Continues

By Author: Gavin Cameron
Total Articles: 6
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Fannie Mae announced Friday that it issued approximately $10.8 billion in securities backed by multifamily housing mortgages in the fourth quarter of 2012. In total, Fannie Mae issued more than $33.1 billion in such securities in 2012, up from $23.8 billion in 2011.

“Market activity for our securities was robust in 2012 with total issuance topping $33 billion,” said Kimberly Johnson, Senior Vice President of Multifamily Capital Markets, Fannie Mae in a press release. “Issuance was particularly strong in the fourth quarter, in part due to the Fed’s aggressive bond-buying program, which has helped to keep borrowing costs at record lows. Private-sector lending has shown signs of growth as well, adding liquidity for all market participants.”

For Kip C Cyprus and Ocean Development, that comes as no surprise. Private funding for multifamily developments has been growing as investors have sought to take advantage of increasing rents and greater demand for rental property. Cyprus and his wife, Amy Cyprus have been building quality multifamily housing for many years, long before the housing market crashed and ...
... drove everyone to rental homes and apartments. And during that time, Cyprus has been able to keep private funding coming by allowing investors to purchase equity shares in rental properties, without the hassles of full ownership and landlord duties.

This approach allows investors to benefit from his years experience. as well as the vast management experience of his team and primary property management team member, Amy Cyprus. And, because Cyprus and Ocean Development maintain an ownership stake, and because they only manage properties that they have developed, they have a genuine, vested interest in the upkeep, maintenance and profitability of their properties.

So, while news that the public sector is helping to meet demand for funding is nice, it’s important to know there is still plenty of room for private investment. More importantly, it’s important to note that rents are expected to keep increasing, despite the slow increase in supply of housing.

While Ocean Development is primarily invested in Section 8, low-income housing, their units far exceed the Department of Housing and Urban Development’s minimum requirements. In fact, Ocean Development leads the Los Angeles area in use of energy efficient structures and quality amenities in low-income housing.

Highlights of Fannie Mae’s multifamily activity in the fourth quarter of 2012 include the following:

1) MULTIFAMILY MBS BACKED BY NEW MULTIFAMILY ACQUISITIONS
New multifamily MBS business volumes in the fourth quarter of 2012 totaled approximately $10.8 billion.
2) FANNIE MAE GeMS & ACES ISSUANCE
Issuance of Fannie Mae’s structured multifamily securities created from collateral selected by Fannie Mae Capital Markets totaled $2.2 billion in the fourth quarter of 2012. This includes two Fannie Mae GeMS REMIC transactions. In addition, dealers issued three multifamily REMICs backed by $1.1 billion of DUS MBS in the fourth quarter of 2012, adding to the liquidity of Fannie Mae DUS MBS. The combined Fannie Mae GeMS and ACES issuance backed by DUS MBS was $13.9 billion in 2012.
3) FANNIE MAE SALES
Fannie Mae Capital Markets sold approximately $1.9 billion of multifamily mortgage securities from its portfolio in the fourth quarter of 2012.2

About the Author: Gavin Cameron loves writing on real estate matters, professionals associated with real estate, real estate development companies etc. He is now writing about Ocean Development, Inc. a real estate development company, which develops, constructs, owns, and sells residential housing units.