Last year, 2,725 different multifamily lenders provided a total of $52.5 billion in new financing for apartment buildings with five or more units, according to the Mortgage Bankers Association's (MBA) Annual Report on Multifamily Lending for 2009. The 2009 dollar volume represents a 40% decline from 2008 levels.
The most active 122 lenders represented just 4% of active lenders but 77% of the dollar volume lent. Three-quarters of the active lenders made five or fewer loans over the course of the year, the MBA reports.
In terms of total dollar volume, the top five multifamily lenders in 2009 were Wells Fargo Bank NA, PNC Real Estate, Deutsche Bank Commercial Real Estate, CBRE Capital Markets Inc. and Capmark Financial Group Inc.
‘The multifamily lending market remained incredibly diverse in 2009, both in terms of the range of loans made and the extent of institutions lending," says Jamie Woodwell, MBA's vice president of commercial real estate research. "2009 saw borrowing volumes drop 40 percent from the previous year, but 2,725 firms remained active in making loans backed by apartment buildings. The depth and breadth of the market provided loans of virtually all sizes."
The MBA's report is based on data from the organization's 2009 Commercial Multifamily Annual Origination Volume Summation and from the Home Mortgage Disclosure Act (HMDA). The MBA survey targets specialized commercial/multifamily originators and covered $82 billion in commercial/multifamily loans in 2009. The HMDA data adds multifamily loans from banks, thrifts and other institutions that meet certain single-family origination thresholds.
SOURCE: Mortgage Bankers Association