Multifamily Lending Increased 6 Percent to a New High of $285 Billion in 2017

Multifamily Lending Increased 6 Percent to a New High of $285 Billion in 2017

WASHINGTON, D.C. (October 29, 2018) – (RealEstateRama) — Strong market conditions helped fuel a 6 percent increase in multifamily lending in 2017, as lenders provided a record high $285 billion in new mortgages for apartment buildings with five or more units, according to the Mortgage Bankers Association’s (MBA) annual report on the multifamily lending market.

“The multifamily lending market in 2017 benefited from improving fundamentals, rising property values and low interest rates,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “The result was larger loan sizes and record levels of overall borrowing and lending. The market remains well served, with 2,554 lenders last year making loans backed by multifamily rental properties. Demand came from borrowers and lenders of all sizes, with loan amounts ranging from thousands of dollars to hundreds of millions.”

The top five multifamily lenders in 2017 by dollar volume were Wells Fargo, CBRE Capital Markets, Inc., JP Morgan Chase & Company, Walker & Dunlop, and Berkadia. 58 percent of the active lenders made five or fewer multifamily loans over the course of the year.

The $285 billion in multifamily mortgages originated in 2017 were funded by a variety of capital sources.  By dollar volume, the greatest share (46 percent) went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac.

MBA’s report is the most comprehensive view available of the multifamily lending market, and includes:

  • A detailed summary of the $285 billion multifamily market
  • Profiles of distinct market segments, including the very-small loan lender segment (loans of $1 million or less)
  • A breakout of 2017 multifamily lending volume by investor group
  • A listing of the 2,554 lenders who made multifamily loans in 2017, including their lending volume, number of loans made and average loan size
  • A listing of metropolitan areas and the volume of very small loans made in each in 2017.

MBA’s annual report is based on data from its 2017 Commercial Multifamily Annual Origination Volume Summation and the recently released Home Mortgage Disclosure Act (HMDA) data. The survey targeted dedicated commercial/multifamily originators and covered $530 billion in commercial/multifamily loans in 2017. The HMDA data adds multifamily loans from banks, thrifts and other institutions that meet certain single-family origination thresholds. When combined, the two datasets provide the most complete assessment of the multifamily lending market available.

To purchase the report, please visit: https://www.mba.org/news-research-and-resources/research-and-economics/commercial/multifamily-research/annual-report-on-multifamily-lending

CONTACT
Adam DeSanctis

(202) 557-2727

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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