Multifamily Volume Rises 33% in 2012’s Favorable Environment

Last year was the golden age of multifamily finance the Mortgage Bankers Association said, as dollar volume increased 33% over 2011. And, the group says this golden age continues today to a large extent, even as the government-sponsored enterprises have slowed their activity.

Low interest rates, strong property fundamentals and increasing multifamily property prices are all supporting a very favorable lending environment. The 33% increase in lending volume in 2012 brought levels nearly back to where they had been in 2007, says Jamie Woodwell, MBAs vice president of commercial real estate finance.

The year ended with $146.1 billion of multifamily mortgage originations. Fannie Mae and Freddie Mac had a 40% market share by volume, but by loan count, 80% of the business was done by banks, thrifts and credit unions for their own portfolios.

As Walker Dunlop has pointed out, Fannie Mae and Freddie Mac have pulled back on multifamily business in 2013 because of Federal Housing Finance Agency lending caps.

The top five lenders by dollar volume for 2012 were JPMorgan Chase Bank, Wells Fargo, CBRE Capital Markets Inc., Walker Dunlop and Berkadia.

There were 2,803 different multifamily lenders who originated loans in 2012.

This report combines data from the Home Mortgage Disclosure Act and MBAs 2012 Commercial Multifamily Annual Origination Volume Summation.

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