Multifamily lending hit a record high in 2018, according to the Mortgage Bankers Association’s annual report of the multifamily lending market.
Last year, 2,669 different multifamily lenders originated a record $339.2 billion in new mortgages for apartment buildings with five or more units. Around 45% 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, vice president of commercial research and economics at MBA. "We've seen these trends continue throughout 2019 and expect multifamily borrowing and lending will rise again both this year and next."
The $339.2 billion in originated multifamily mortgages went to various investors. By dollar volume, 42% went to Fannie Mae and Freddie Mac.
MBA listed Wells Fargo, CBRE Capital Markets, JP Morgan Chase, Berkadia, and Walker & Dunlop as the top five multifamily lenders in 2018 by dollar volume.