Lending for multifamily housing in
buildings with five or more units increased by 33 percent in 2012 according to
the Mortgage Bankers Association (MBA).
The volume of new mortgages for this purpose totaled 146.1 billion and
echoed data from the Census Bureau and other sources showing an especially strong
come back in multi-family construction, especially in the early part of the
While 2,803 different lenders were
involved in the loans, 67 percent made five or fewer such loans during the
year. Forty percent of the dollar volume
went to the two government sponsored enterprises (GSEs) Fannie Mae and Freddie
Mac. In terms of number of loans commercial
bank, thrift, and credit union portfolios had 80 percent of the market. The
five largest lenders by dollar volume were JP Morgan Chase Bank, Wells Fargo,
CBRE Capital Markets, Walker & Dunlop, and Berkadia.
"In many ways we were in
a golden age of multifamily finance in 2012, that to a large extent continues
today," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate
Finance. "Low interest rates, strong property fundamentals and increasing
multifamily property prices are all supporting a very favorable lending
environment. The 33 percent increase in lending volume in 2012 brought
levels nearly back to where they had been in 2007."
The MBA report is based
on data from the MBA 2012 Commercial Multifamily Annual Origination Volume
Summation and the Home Mortgage Disclosure Act (HMDA) and is for sale on the