MBA Chart of the Week: Multifamily Lending By Investor Group ($Billions)
Multifamily mortgage borrowing and lending set a record in 2015. Demand for mortgages was driven by strong property fundamentals, increasing property values, a robust transaction market and low interest rates.
Supply of mortgage capital came through record levels of lending by banks, Fannie Mae, Freddie Mac and life insurance companies.
MBA reported 2,855 lenders made 46,920 multifamily loans totaling $249.8 billion in 2015, 28 percent higher than total dollar volume in 2014. JPMorgan Chase & Co. (7,578 loans for $23.9 billion) and Wells Fargo (1,827 loans for $23.7 billion) led largest lenders by dollar volume. Commercial bank, thrift and credit union portfolios provided the most multifamily loans by number (35,281 loans totaling $88.4 billion) while Fannie Mae, Freddie Mac and FHA accounted for largest dollar volume (6,252 loans totaling $94.1 billion).
Numbers are based on data from the MBA 2015 Commercial Multifamily Annual Origination Volume Summation and the Home Mortgage Disclosure Act. When combined, the two datasets provide the most comprehensive assessment of the multifamily lending market available. Full results are available in the MBA Annual Report on Multifamily Lending: https://www.mba.org/news-research-and-resources/research-and-economics/commercial/multifamily-research/annual-report-on-multifamily-lending.
To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.
(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at jwoodwell@mba.org. Reggie Booker is associate director of commercial/multifamily research with MBA; he can be reached at rbooker@mba.org.)
