In the commercial and multifamily mortgage markets, different capital sources track delinquency rates in different ways, and for a host of good reasons.
Three times each year, MBA publishes its best thinking about how the next two years will shape up for commercial and multifamily real estate finance (CREF) markets.
The multifamily mortgage market is large and diverse, with 2,554 lenders making 44,623 loans totaling a record $285 billion in 2017.
The role of "Non-traditional" lenders continues to grow within the commercial real estate finance market.
The US economy showed solid strength during the second quarter, and that strength continues to flow through to demand for commercial real estate.
With the unemployment rate at 3.9 percent and more unfilled jobs than there are unemployed, MBA's Commercial Real Estate Finance (CREF) Careers effort is working to bring more -- and more diverse - candidates to the $3 trillion commercial real estate finance industry.
Commercial and multifamily mortgage borrowing and lending have started 2018 at the second fastest pace on record, with first-half 2018 originations lower only than those of the first half of 2007.
The role of "non-traditional" lenders in commercial real estate finance increased significantly in 2017, but there is far more discussion about this than there is actual data.
Borrowing and lending backed by commercial real estate is starting 2018 at roughly the same pace at which it started 2017. The property types drawing the most attention of late continued to follow different paths, with retail originations declining while multifamily and industrial increased. It was the strongest first quarter on record for originations of loans for life insurance companies and the GSEs, Fannie Mae and Freddie Mac.
During the first three months of 2018, commercial and multifamily mortgage debt outstanding increased more than during any other first quarter since before the Great
MBA's commercial/multifamily mortgage bankers origination index reported an 8 percent increase in the dollar volume of loans closed for Fannie Mae and Freddie Mac between Q1 2017 and Q1 2018. According to the GSEs' 10‐Qs, their multifamily business activity declined 19 percent over that period.
Who's wrong? In this case, nobody.
Today, MBA released out most recent Commercial/Multifamily Real Estate Finance (CREF) Forecast. Lending terms remain extremely attractive, and we anticipate another strong year in 2018, although perhaps not quite as strong as 2017.
Loans backed by multifamily apartment buildings have contributed an increasing share of mortgage bankers' commercial and multifamily mortgage originations in recent years.