Cincinnati-based Fifth Third Bancorp recently closed on its purchase of California-based Mechanics Bank’s Delegated Underwriting and Servicing (DUS) business line. The deal includes a $1.8 billion unpaid principal balance servicing portfolio and the business lines employees.
The DUS program is designed to provide liquidity and stability to the housing market. It will provide Fifth Third with direct access to Fannie Mae products and a servicing model. The purchase is part of Fifth Third’s commitment to delivering innovative solutions and advancing housing affordability.
“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,” John Hein, Fifth Third head of Commercial Real Estate, said. “This acquisition empowers us to better support our clients and the housing needs in the communities we serve across the country.”
Fifth Third is the ninth-largest U.S. bank, with approximately $297 billion in assets, and is now one of 24 lenders nationwide authorized by Fannie Mae to originate, underwrite, close, and service multifamily loans.
Fifth Third Bancorp is the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. Multifamily housing is the largest component of Fifth Third Bank’s commercial real estate portfolio.