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MBA Says Multifamily Lending Jumped 19% to Record $339B in 2018
Favorable market conditions helped spur a 19% increase in multifamily lending in 2018 to a new high in dollar volume, according to the Mortgage Bankers Association’s (MBA) annual report of the multifamily lending market. Last year, 2,669 different multifamily lenders provided a record $339.2 billion in new mortgages for apartment buildings with five or more units.
MBA’s Jamie Woodwell says, “Borrowing and lending backed by multifamily rental properties set a new record in 2018, driven by strong property fundamentals, rising property values, low interest rates, and strong demand from both borrowers and lenders. We’ve seen these trends continue throughout 2019, and expect multifamily borrowing and lending will rise again both this year and next.”
By dollar volume, the greatest share went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac (42%). MBA notes, the top five multifamily lenders in 2018 by dollar volume were Wells Fargo, CBRE Capital Markets, Inc., JP Morgan Chase & Company, Berkadia, and Walker & Dunlop.
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