Multifamily Lending Up 28 Percent in 2015
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WASHINGTON, D.C. (October 20, 2016) - In 2015, 2,855 different multifamily lenders provided a total of $249.8 billion in new mortgages for apartment buildings with five or more units, according to the Mortgage Bankers Association's (MBA) 2015 Annual Report on Multifamily Lending. The 2015 dollar volume represents a 28 percent increase from 2014 levels. Sixty-three percent of the active lenders made five or fewer multifamily loans over the course of the year.
"Multifamily mortgage borrowing and lending set a new record in 2015," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Demand for mortgages was driven by strong property fundamentals, increasing property values, a robust transaction market and low interest rates. Supply of mortgage capital came through record levels of lending by banks, Fannie Mae, Freddie Mac and life insurance companies. As we look at 2016 and 2017, those factors appear to remain in place."
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 $249.8 billion of multifamily mortgages originated in 2015 went to a variety of investors. By number of loans, the greatest share (75 percent of the total) went to commercial bank, thrift and credit union portfolios.
The top five multifamily lenders in 2015 by dollar volume were JP Morgan Chase and Company, Wells Fargo, Berkadia, CBRE Capital Markets, Inc., and Walker & Dunlop.
The MBA report is the most comprehensive view available of the multifamily lending market and includes:
- A detailed summary of the $249.8 billion multifamily market,
- Profiles of distinct market segments, including the very-small loan (loans of $1 million or less) lender segment,
- A breakout of 2015 multifamily lending volume by investor group,
- A listing of 2,855 lenders who made multifamily loans in 2015, 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 2015.
The report is based on data from the MBA 2015 Commercial Multifamily Annual Origination Volume Summation and the Home Mortgage Disclosure Act (HMDA). The MBA survey targets dedicated commercial/multifamily originators and covered $504 billion in commercial/multifamily loans in 2015. 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 visit the following Web link: https://www.mba.org/news-research-and-resources/research-and-economics/commercial/multifamily-research/annual-report-on-multifamily-lending?utm_source=Informz&utm_medium=Email&utm_campaign=mba.org