Year-Over-Year Origination Volume
- Jan 30, 2018
$ in billions
As indicated by the latest data available, multifamily lending was up 8 percent year over year in 2016, with nearly 3,000 different multifamily lenders providing a total of $269.2 billion in new mortgages for apartment buildings with five or more units, according to the Mortgage Bankers Association. Strong property performance, rising property values and low mortgage rates all meant greater access to mortgage credit for apartment property owners in 2016. The $269 billion in lending that took place shows the breadth of the market—with loans ranging in size from tens of thousands of dollars to hundreds of millions. The largest lender closed more than 7,500 loans, while 61 percent of active lenders closed five or fewer loans.
Originated loans went to a variety of investors. By dollar volume, the greatest share (39 percent of the total) went to government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. The top five multifamily lenders in 2016 by dollar volume were Wells Fargo, JP Morgan Chase and Co., CBRE Capital Markets Inc., Berkadia and Walker & Dunlop. Market momentum continued in 2017, with strong demand from borrowers and a strong appetite for issuance by lenders, especially of loans going to government-related entities.
Jamie Woodwell is the Mortgage Bankers Association’s vice president of commercial real estate research.