According to the Mortgage Bankers Association, last year’s $480.1 billion in multifamily lending volume represents a one percent decrease from 2021 levels. Thirty-three percent of the active lenders made five or fewer multifamily loans over the course of the year. The data represents loans for new new mortgages for apartment buildings with five or more units.
The top five multifamily lenders in 2020 by dollar volume were JP Morgan Chase & Company, Wells Fargo, Walker & Dunlop, Berkadia, and Capital One Financial Corp.
“Multifamily borrowing remained strong in 2022, largely as a result of lending by banks,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Beginning in last year’s third quarter, rising and volatile interest rates, uncertainty about property values, and questions about some property fundamentals led to a fall off in borrowing and lending across commercial property types, including multifamily. Most capital sources saw a significant decline in lending activity in 2022, but bank activity increased by an almost equal amount. It’s unlikely that this momentum is occurring this year, given current evidence that banks have tightened underwriting standards and borrower demand has weakened.”
To view the full MBA report, click here.