According to the Mortgage Bankers Association’s (MBA) annual report of the multifamily lending market, in 2022, 2,242 different multifamily lenders provided a total of $480.1 billion in new mortgages for apartment buildings with five or more units.
Last year’s $480.1 billion in multifamily lending volume represents a 1% decrease from 2021 levels. Thirty-three percent of the active lenders made five or fewer multifamily loans over the course of the year.
“Multifamily borrowing remained strong in 2022, largely as a result of lending by banks,” says 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.”
MBA’s report is based on its surveys of the larger multifamily lenders and the recently released Home Mortgage Disclosure Act (HMDA) data that covers multifamily loans made by many smaller lenders, particularly commercial banks.
The $480.1 billion of multifamily mortgages originated in 2022 went to a variety of investors. By dollar volume, the greatest share (42% of the total) went to depositories.
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.
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