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Are Standards Loosening for Affordable and Green Financing?

An OC-based Walker & Dunlop executive closes a $289-million loan with Fannie Mae on 21 Section 8 and 11 Fannie Mae Green Rewards properties across California, prompting the question of relaxing underwriting for these niches.

By Carrie Rossenfeld | carrierossenfeld | Updated on August 02, 2017

Steven Natale Natale: ““The underwriting standards for affordable transactions and green financings are not necessarily being loosened, but the agencies are pricing and structuring these deals very aggressively compared to conventional transactions.

IRVINE, CA—Walker & Dunlop Inc. has closed a $289-million financing with Fannie Mae on 21 multifamily properties across the state of California for an undisclosed borrower. The 21 properties included 11 project-based Section 8 Housing Assistance Payment contracts, while the remaining 10 properties all qualified for Fannie Mae’s Green Rewards Program.

Irvine, CA-based Steven Natale, VP, led the Walker & Dunlop team in the financing transaction. Natale tells GlobeSt.com, “The underwriting standards for affordable transactions and green financings are not necessarily being loosened, but the agencies are pricing and structuring these deals very aggressively compared to conventional transactions. They see these transactions as their top priority in fulfilling their mission of supporting affordable housing throughout the country, especially in high-cost areas where most of these assets were located. Both of these specialty products have had small enhancements over the past year or so, making them more easily accessible to borrowers.”

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