MBA Report: Multifamily Lending Jumped 13 Percent in 2014
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WASHINGTON, D.C. (October 22, 2015) - In 2014, 2,876 different multifamily lenders provided a total of $195.1 billion in new mortgages for apartment buildings with five or more units, according to the Mortgage Bankers Association (MBA) 2014 Report on Multifamily Lending. The 2014 dollar volume represents a 13 percent increase from 2013 levels. Sixty-five percent of the active lenders made five or fewer multifamily loans over the course of the year.
"Lenders provided more than $195 billion of capital to multifamily apartment owners in 2014, a new record," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The lending came from a range of lenders - with two-thirds making five or fewer multifamily loans during the year - and went to a range of borrowers - with more than one-quarter of the loans being for $500,000 or less. The market has continued to expand this year and shows every sign of breaking last year's record."
The MBA report is based on its surveys of the larger multifamily lenders and the recently released Home Mortgage Disclosure Act (HMDA) data that covers multifamily loans made by many smaller lenders, particularly commercial banks.
The $195.1 billion of multifamily mortgages originated in 2014 went to a variety of investors. By dollar volume, the greatest share, 35 percent of the total, went to commercial bank, thrift and credit union portfolios.
The top five multifamily lenders in 2014 by dollar volume were J.P. Morgan Chase and Company, Wells Fargo, CBRE Capital Markets, Inc., Walker & Dunlop, and PNC Real Estate.
The MBA report is the most comprehensive view available of the multifamily lending market and includes:
- A detailed summary of the $195.1 billion multifamily market,
- Profiles of distinct market segments, including the very-small loan (loans of $1 million or less) lender segment,
- A breakout of 2014 multifamily lending volume by investor group,
- A listing of 2,876 lenders who made multifamily loans in 2014, including their lending volume, number of loans made and average loan size, and
- A listing of metropolitan areas and the volume of very-small loans made in each in 2014.
The report is based on data from the MBA 2014 Commercial Multifamily Annual Origination Volume Summation and HMDA. The MBA survey targets dedicated commercial/multifamily originators and covered $400 billion in commercial/multifamily loans in 2014. 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 comprehensive assessment of the multifamily lending market available.
To purchase the report, please click here.