The multifamily lending sector ended 2016 on an eight percent year-over-year increase, setting a new peak with nearly 3,000 different lenders originating $269.2 billion in new mortgages for apartment buildings with five or more units, according to the Mortgage Bankers Association (MBA)
By dollar volume, the greatest share (39 percent of the total) went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac.
The top five multifamily lenders in 2016 by dollar volume were Wells Fargo, JP Morgan Chase and Company, CBRE Capital Markets, Inc., Berkadia, and Walker & Dunlop. Among the investors in this market, the greatest share by dollar volume went to Fannie Mae and Freddie Mac, who harvest 39 percent of this volume.
“In 2016, strong property performance, rising property values and low mortgage rates all meant greater access to mortgage credit for apartment property owners,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The $269 billion in lending that took place shows the breadth of the market—with loans ranging in size from tens of thousands of dollars to hundreds of millions, and the largest lender closing more than 7,500 loans while 61 percent of active lenders closed five or fewer loans.”