MBA Study: 40 Percent Decline in Multifamily Borrowing Among Diverse Lenders and Loan Sizes
In 2009, 2,725 different multifamily lenders provided a total of $52.5 billion in new financing for apartment buildings with five or more units, according to the Mortgage Bankers Association's (MBA) Annual Report on Multifamily Lending for 2009. The 2009 dollar volume represents a 40 percent decline from 2008 levels. The most active 122 lenders represented just four percent of active lenders, but 77 percent of the dollar volume lent. Three-quarters of the active lenders made five or fewer loans over the course of the year. In terms of total dollar volume, the top five multifamily lenders in 2009 were Wells Fargo Bank NA, PNC Real Estate, Deutsche Bank Commercial Real Estate, CBRE Capital Markets Inc., and Capmark Financial Group Inc. "The multifamily lending market remained incredibly diverse in 2009, both in terms of the range of loans made and the extent of institutions lending," said Jamie Woodwell, MBA's vice president of commercial real estate research. "2009 saw borrowing volumes drop 40 percent from the previous year, but 2,725 firms remained active in making loans backed by apartment buildings. The depth and breadth of the market provided loans of virtually all sizes." The MBA report is the most comprehensive view available of the multifamily lending market and includes: ►A detailed summary of the $52 billion multifamily market, ►Profiles of distinct market segments, including the very-small loan (loans of $1 million or less) lender segment, ►A listing of 2,725 lenders who made multifamily loans in 2009, 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 2009. The report is based on data from the MBA 2009 Commercial Multifamily Annual Origination Volume Summation and the Home Mortgage Disclosure Act (HMDA). The MBA survey targets specialized commercial/multifamily originators and covered $82 billion in commercial/multifamily loans in 2009. 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 mortgage market available. For more information, visit www.mortgagebankers.org.