2017 saw a 6% increase in the sector
A new high was reached in the multifamily lending sector in 2017 according to new figures from the Mortgage Bankers Association.
It says that new mortgages for apartment buildings of 5 or more units increased 6% to $285 billion with Wells Fargo, CNRE Capital Markets, JP Morgan Chase, Walker & Dunlop, and Berkadia, the top 5 multifamily lenders.
Most (58%) active lenders made five or fewer multifamily loans during the course of the year.
"The multifamily lending market in 2017 benefited from improving fundamentals, rising property values and low interest rates," said Jamie Woodwell, MBA's vice president of commercial real estate research. "The result was larger loan sizes and record levels of overall borrowing and lending. 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."
By dollar volume, the greatest share (46%) of mortgages originated in 2017 went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac.
