U.S. multifamily lending hit a new record in 2018, according to the Mortgage Bankers Association’s (MBA) annual report of the multifamily lending market.
U.S. multifamily lending increased by 19 percent in 2018 and 2,669 different multifamily lenders provided a record $339.2 billion in new mortgages for apartment buildings with five or more units.
Forty-five percent of the active lenders made five or fewer multifamily loans over the course of the year.
“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,” said Jamie Woodwell, MBA’s Vice President of Commercial Research and Economics.
“We’ve seen these trends continue throughout 2019 and expect multifamily borrowing and lending will rise again both this year and next,” he added.
The $339.2 billion in originated multifamily mortgages went to a variety of investors. By dollar volume, the greatest share went to the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac (42 percent).
The top five multifamily lenders in 2018
The top five multifamily lenders in 2018 by dollar volume were;
-CBRE Capital Markets, Inc.,
-JP Morgan Chase & Company,
-Walker & Dunlop.
The MBA expects total multifamily lending to rise to $359 billion this year and to $390 billion in 2020.