Five Large Lenders Fueled Golden Age of Multifamily Lending

Lending for multifamily housing inrnbuildings with five or more units increased by 33 percent in 2012 according tornthe Mortgage Bankers Association (MBA). rnThe volume of new mortgages for this purpose totaled 146.1 billion andrnechoed data from the Census Bureau and other sources showing an especially strongrncome back in multi-family construction, especially in the early part of thernyear.</p

While 2,803 different lenders wererninvolved in the loans, 67 percent made five or fewer such loans during thernyear.  Forty percent of the dollar volumernwent to the two government sponsored enterprises (GSEs) Fannie Mae and FreddiernMac.  In terms of number of loans commercialrnbank, thrift, and credit union portfolios had 80 percent of the market.   Thernfive largest lenders by dollar volume were JP Morgan Chase Bank, Wells Fargo,rnCBRE Capital Markets, Walker & Dunlop, and Berkadia.  </p

“In many ways we were inrna golden age of multifamily finance in 2012, that to a large extent continuesrntoday,” said Jamie Woodwell, MBA’s Vice President of Commercial Real EstaternFinance.  “Low interest rates, strong property fundamentals and increasingrnmultifamily property prices are all supporting a very favorable lendingrnenvironment.  The 33 percent increase in lending volume in 2012 broughtrnlevels nearly back to where they had been in 2007.”</p

The MBA report is basedrnon data from the MBA 2012 Commercial Multifamily Annual Origination VolumernSummation and the Home Mortgage Disclosure Act (HMDA) and is for sale on thernMBA website. 

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