2,670 lenders close 49,727 multi-family loans for $133 billion in 2005MortgagePress.comMulti-family loan statistics
In 2005, 2,670 different multi-family lenders provided a total
of more than $133 billion in financing for apartment buildings with
five or more units, according to a report from the Mortgage Bankers
Association (MBA). Lenders closed 49,727 individual loans, with an
average loan size of $2.7 million. The average lender made 19
multi-family loans over the course of the year.
"The report, MBA Annual Report on Multi-family Originations, is
a new report that demonstrates that the multi-family market is
broad and deep, but very much segmented by size," said Jamie
Woodwell, MBA's senior director of commercial/multi-family
research. "For example, the top seven lenders each made more than
1,000 multi-family loans in 2005, while 716 lenders—27
percent of all active multi-family lenders—made just one
multi-family loan during the year."
On a dollar basis, Wachovia was the largest multi-family lender
in 2005, followed by Capmark and Washington Mutual. Washington
Mutual closed the highest number of loans, followed by Capmark and
The average size of a multi-family loan in 2005 was $2.7
million, but this number belied significant market segmentation.
Among 2,216 very small-loan lenders, the average multi-family loan
size was just $500,000, compared to a $14.6 million average loan
size among the 31 large-loan lenders. The numbers implied a
national market for loans with larger balances and a more local
market for smaller-balance multi-family loans.
The MBA Annual Report in Multi-family Originations included a
description of the multi-family market and lenders within it;
information on the very small-loan market (loans of $1 million or
less); tables listing all 2,670 multi-family lenders in 2005, their
loan volumes and average loan sizes; and the volume of very small
loans made in each Metropolitan Statistical Area.
The report was based on data combined from the MBA 2005
Commercial Real Estate/Multi-Family Finance: Annual Origination
Volume Summation and the Home Mortgage Disclosure Act (HMDA). The
MBA survey targeted specialized commercial/multi-family originators
and covered $345 billion in combined commercial/multi-family
originations in 2005. The HMDA data added multi-family loans from
banks, thrifts and other institutions that met certain
single-family origination thresholds.
According to the U.S. Census Bureau's American Housing Survey in
2005, 16 percent of American households lived in homes rented in a
building with five or more units. These buildings, known as
multi-family housing, are a critical part of the U.S. housing stock
and a keystone in the nation's affordable housing.
For more information, visit www.mbaa.org.