Fifth Third Bancorp announced that it will acquire Mechanics Bank’s Delegated Underwriting and Servicing (DUS) business line for an all‑cash consideration of approximately $130 million. The deal adds a $1.8 billion servicing portfolio focused on multifamily loans under the Fannie Mae DUS program, giving Fifth Third direct access to a proven underwriting and servicing model that supports large‑scale multifamily projects.
The acquisition strengthens Fifth Third’s commercial real‑estate platform by adding a new fee‑income stream and expanding its footprint in the multifamily market, a segment the bank has identified as a key growth area. By becoming an authorized DUS lender, Fifth Third can underwrite, close, and service loans on behalf of Fannie Mae, accelerating deal flow and improving pricing flexibility for developers and investors.
This transaction fits into Fifth Third’s broader strategy of building recurring fee businesses and expanding its presence in the Southeast. It also complements the bank’s pending merger with Comerica, which is expected to close in the first quarter of 2026, and positions Fifth Third to capture synergies across both institutions’ commercial real‑estate portfolios.
The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and Fannie Mae’s approval of Fifth Third as an authorized DUS lender. Management anticipates that the added servicing portfolio will contribute to incremental fee income and support the bank’s goal of enhancing housing affordability and community development.
John Hein, head of Commercial Real Estate at Fifth Third, said the acquisition “reinforces our commitment to multifamily housing, the largest component of our commercial real‑estate portfolio, and will enable us to better serve clients and address community needs.”
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