MBA Data Shows Multifamily Lending Reached New Record High Last Year

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, the Mortgage Bankers Association reported today.

"The multifamily lending market in 2017 benefited from improving fundamentals, rising property values and low interest rates," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. "The result was larger loan sizes and record levels of overall borrowing and lending."

Woodwell said 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," he said.

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. Fifty-eight percent of the active lenders made five or fewer multifamily loans over the course of the year.

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