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Cap/Swap Counterparties for Multifamily Transactions
Below is a list of approved interest rate hedge providers for borrowers who are required to purchase a hedge in connection with a Multifamily debt transaction. The financial institutions listed below, met Fannie Mae's ratings requirements for such transactions and have also been deemed to be otherwise acceptable to Fannie Mae.
- The Bank of New York Mellon
- Commonwealth Bank of Australia
- Royal Bank of Canada
- SMBC Derivative Products Ltd. and SMBC Capital Markets, Inc.
- Wells Fargo Bank, N.A.
The ratings requirements are:
- at least an A issuer or senior debt rating and an A-1 short-term rating from Standard & Poor's; and
- at least an A2 issuer or senior debt rating and a P-1 short-term rating from Moody's.
Only providers on this list can be used for new interest rate hedges (including the replacement of existing hedges upon expiration). However, the fact that a provider included on a previous list is not included on this list does not indicate that Fannie Mae believes any existing hedges with that provider should be terminated and replaced. Fannie Mae will notify its Lenders if it determines that a ratings downgrade or other adverse event for a given provider necessitates a termination.
This list ("List") of interest rate cap and swap providers ("Providers") is current only as of the date this List was released. Fannie Mae makes no promise that any Provider will remain acceptable to Fannie Mae in the future and does not undertake to inform anyone of changes to this List. This List names Providers whose interest rate caps and swaps are, as of the date of this List, generally acceptable to Fannie Mae for Fannie Mae's own risk and account. Fannie Mae does not intend this List to be an endorsement of any Provider. Fannie Mae is not and will not be liable for the current or future condition (financial or otherwise) or performance of any Provider. Interest rate caps, swaps and other business transacted with any Provider are for your own risk and account.
If you have any questions, please contact Multifamily Product Management via email.