Fifth Third Bancorp announced the closing of its acquisition of Mechanics Bank’s Delegated Underwriting and Servicing business line, including an experienced multifamily lending team and a servicing portfolio with approximately $1.8 billion in unpaid principal balance.
Through the acquisition, Fifth Third becomes one of 24 lenders nationwide authorized by Fannie Mae to originate, underwrite, close, and service multifamily loans under the Delegated Underwriting and Servicing program.
Fifth Third said the transaction strengthens its commercial real estate finance capabilities and expands its ability to support multifamily housing development and financing across the United States.
The company noted that multifamily housing already represents the largest component of its commercial real estate portfolio. Fifth Third currently ranks as the ninth-largest U.S. bank with approximately $297 billion in assets.
The DUS program serves as a core component of Fannie Mae’s multifamily lending platform and is designed to provide liquidity and stability to the housing market. Through the acquisition, Fifth Third gains direct access to Fannie Mae multifamily lending products and servicing infrastructure.
Fifth Third also cited ongoing housing shortages in the United States as a key driver supporting increased multifamily financing demand. The bank said the expanded capabilities position it to support housing affordability and additional residential development activity nationwide.
Fifth Third is a Cincinnati-based financial institution providing banking and commercial financial services across the United States.
KEY QUOTES:
“This will significantly enhance the Bank’s ability to finance multifamily housing across the United States and further strengthens our leadership in commercial real estate finance. This acquisition empowers us to better support our clients and the housing needs in the communities we serve across the country.”
John Hein, Head Of Commercial Real Estate, Fifth Third
