MBA Chart of the Week: Multifamily Mortgage Lending, 2013-2016 ($M)

October 23, 2017

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Source: MBA Annual Report on Multifamily Lending

Last year was another record year for multifamily mortgage lending, according to a new report from the Mortgage Bankers Association.

Multifamily lending was up 8 percent year over year in 2016, with nearly 3,000 different multifamily lenders providing $269.2 billion in new mortgages for apartment buildings with five or more units. Strong property performance, rising property values and low mortgage rates all meant greater access to mortgage credit for apartment property owners in 2016.

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.

Originated loans went to a variety of investors. By dollar volume, the greatest share (39 percent of the total) went to Government-Sponsored Enterprises Fannie Mae and Freddie Mac. The top five multifamily lenders in 2016 by dollar volume were Wells Fargo, JPMorgan Chase and Co., CBRE Capital Markets Inc., Berkadia and Walker & Dunlop.

Market momentum has continued in 2017, with strong demand from borrowers and a strong appetite to lend by lenders, especially of loans going to government-related entities.

(Reggie Booker is associate director of commercial/multifamily research with MBA; he can be reached at rbooker@mba.org.)