DUS (Delegated Underwriting and Servicing) is Fannie Mae 's primary multifamily lending program. A Fannie-approved DUS lender originates the loan to Fannie's standards and shares loss risk with Fannie. The program is designed for fast, predictable execution on stabilized multifamily of 5+ units.
Why does DUS exist as a program structure?
Fannie Mae cannot originate every multifamily loan in the country directly. The DUS structure delegates underwriting and servicing to roughly two dozen approved lenders, each of whom originates loans to Fannie's published standards and retains a share of the loss risk on each loan. This dramatically reduces Fannie's per-deal cost and lets the program scale.
From a borrower's perspective, the DUS lender is the counterparty: they quote the loan, underwrite it, close it, and service it. Fannie purchases the loan and holds it (or securitizes it). The borrower's day-to-day relationship is with the DUS lender's servicing team for the life of the loan.
What does DUS execute well?
Stabilized multifamily of 5+ units with strong physical condition, healthy debt yield, and a sponsor with reasonable experience. Typical execution: 60 to 120 days from term sheet to closing, 65% to 75% LTV, fixed-rate 5/7/10/15-year structures with 30-year amortization, non-recourse with standard carve-outs, and competitive pricing tied to Treasury benchmark plus a credit spread.
What is a DUS loan less suited for?
Pre-stabilized properties (use bridge or HUD 221(d)(4) construction-perm), properties with significant rehab need (use bridge or 223(f) with rehab), or properties with weak debt yield where the DUS sizing tests are binding constraints.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Multifamily Market Commentary · Fannie Mae Economic & Strategic Research · 2026-Q1