Fannie Mae and Freddie Mac multifamily, side by side

Sponsors ask which logo is better. The useful question is which approved lender will deliver the loan on this apartment community. Fannie Mae's multifamily site describes its Delegated Underwriting and Servicing model, DUS. It says DUS lenders underwrite, close, and deliver loans on Fannie Mae's behalf and typically retain one-third of the risk, and that they service for the life of the loan. That is Fannie Mae's description of its own system. A DUS lender is the party who does that work. Capital Market Funds is not a Fannie Mae DUS lender.

Freddie Mac's lender page says Freddie Mac Multifamily purchases loans through an approved group of Optigo lenders. Those lenders originate and underwrite, then deliver the loan for purchase. The same page points lenders to selling, servicing, and asset management inside that system. An Optigo lender makes the Freddie Mac loan. Capital Market Funds is not a Freddie Mac Optigo lender. Arranging an introduction does not make this office either kind of lender.

What actually differs when you are the borrower

You do not pick a coupon off a public page. You pick a story an approved lender will deliver: conventional apartments, a rent-restricted community, or another multifamily execution that lender actually offers. Fannie Mae's site says its financing covers a wide spectrum, from conventional and rent-restricted properties to niche and specialty projects, and that DUS lenders deliver the loans. Freddie Mac's lender page says the purchase runs through Optigo lenders who originate and underwrite. The quote you can use is the quote from a lender approved for that execution. Two quotes on the same rent roll can differ in proceeds, recourse, prepay, and who services. Those are the differences worth reading. A preference for one enterprise's name is not an underwriting reason.

This note does not say one enterprise is safer, faster, or cheaper. It does not print a spread. Volume caps, and why a cap is not an approval, stay on the agency caps and source selection page. Structural boxes for agency debt next to banks, life companies, and CMBS, still without rates, are the lender-type comparison. Words such as DSCR and LTV are defined on the glossary.

Where an Arizona apartment file goes from here

Investor-owned apartments of five or more units are the commercial collateral. A loan on a house, or on a single condominium a person lives in, is not this essay. The property-type page is Arizona multifamily. A stabilized community that is ready for a long loan is also described as Arizona permanent financing. If the community is still in a renovation or a lease-up, agency debt may be the wrong first call. Say that before anyone requests a term sheet.

Craig Hoebing arranges the file from Scottsdale under Arizona commercial mortgage banker license CMB-1047342 and NMLS 1445066. Capital Market Funds is not a Fannie Mae DUS lender. Sending a rent roll does not commit a DUS lender or an Optigo lender to buy or make a loan.