Fifth Third to acquire Fannie Mae’s DUS business line, terms not disclosed

Fifth Third Bancorp (FITB) announced a strategic acquisition. The Bank has entered into a definitive agreement to acquire Mechanics Bank’s Delegated Underwriting and Servicing business line, which includes its experienced team and a $1.8B unpaid principal balance servicing portfolio. “This acquisition strengthens Fifth Third’s leadership in commercial real estate finance and expands our ability to serve multifamily developers and investors with competitive, permanent financing solutions,” said John Hein, head of Commercial Real Estate at Fifth Third. “Multifamily housing is the largest component of our commercial real estate portfolio, and this move enables us to better support our clients and the housing needs in the communities we serve.” As a cornerstone of Fannie Mae’s (FNMA) multifamily lending platform, the DUS program is designed to provide liquidity and stability to the housing market. Fifth Third gains direct access to Fannie Mae products and a proven servicing model by acquiring this license and reinforces its commitment to delivering innovative solutions for clients and advancing housing affordability. The acquisition is subject to customary closing conditions and certain third-party approvals, including approval by Fannie Mae.