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Download Term Sheet
FANNIE MAE® DUS
Negotiated Pools
Fannie Mae Multifamily purchases and securitizes pools of seasoned loans to reduce lenders’ portfolio risk, improve liquidity or relieve regulatory pressure.
BENEFITS
- Optimize balance sheet management by strategically selling or swapping pools of loans for MBS.
- Improve portfolio liquidity.
- Manage and mitigate concentration risk, whether credit, geographic or borrower.
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ELIGIBILITY
- Permanent loans on multifamily rental properties comprised of five or more units.
- Loans must be closed, or “seasoned,” prior to purchase.
- Pool minimum size of $100 million.
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EXECUTION OPTIONS
MBS Swap: Exchange whole loans for Fannie Mae MBS to be held in portfolio or sold to a capital markets investor for immediate liquidity.
Wisconsin Avenue Security (WAS) REMIC: Fannie Mae tranches risk in a senior/subordinate capital structure, giving the lender the option of retaining the bonds or selling the bonds (to capital markets investors or to Fannie Mae).
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PROCESS
A pool transaction is a complex and intricate process that affects many aspects of a lender’s business. Fannie Mae has a dedicated and experienced team of credit, capital markets, legal, disclosure, operations and other professionals that will work with the lender from beginning to end, including:
- Pricing: Includes (1) evaluating and scrubbing the ‘data tape’ to ensure initial compliance, (2) determining the best execution based on the lender’s preferences and market conditions, and (3) providing indicative bids.
- Loan Level Due Diligence: Thorough data, credit, and legal review.
- Rate Lock: Manages the lender’s interest rate exposure.
- Closing and Funding: Executing transaction documents and releasing funds.
Although each transaction varies depending on pool size, data quality, and loan characteristics, the entire process – from initial tape to funding – generally takes 8 to 12 weeks.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.