According to the newly released stats, DUS lenders delivered$18.2 billion of Fannie's total $20 billion investment inmultifamily rental housing in the first half of 2008. The agencyalso increased its participation across most sectors. Lending instructured transactions, for instance, registered $3 billion forthe half year--a 67% increase from the same period last year. Thecompany also invested more than $1.5 billion in seniors housing,and $264 million in student housing, doubling its mid-year 2007production of $132 million. Fannie Mae's investment in manufacturedhousing rose four-fold to $458 million, from $89 million bymid-year 2007.


Now, Fannie is preparing to introduce new products to its DUScommunity, Manny Menendez, VP of Multifamily Product Development,told listeners of the call. It will be introducing shortly as aStreamlined Rate Lock execution product that allows lenders to lockthe interest rate on borrowers' loans at any point during theunderwriting process. "It will provide more delegation to thelenders," Menendez explained. Currently Fannie Mae offers severalrate lock products but they all are encumbered with a prescribedunderwriting process. This new product, he said, will be offered"without us prescribing specific rules."


Fannie Mae also plans to roll out a product that will providefinancing from construction to refinance – across the entireproperty lifecycle, in other words. The GSE currently providesconstruction financing -- this new product will join that withpermanent financing and a rate lock capability, Menendez said. "Weview product innovation as a key element of the success of our DUSprogram and we are working closely with DUS lenders to continue toinnovate."

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