The Current State of Multifamily Lending
Digested from "Multifamily Lending Brief: Q3 2015"
Property Management Insider (12/1/15) Kitchens, Bill
Multifamily lending has increased significantly since the end of the great recession and is currently the leading market for lending.
Government-sponsored enterprises (GSEs) and agencies own about 42 percent of multifamily loans, and banks hold about one-third. But banks have been increasing their share of loan balances more rapidly than GSEs, with commercial banks originating nearly as many loans as Freddie Mac and Fannie Mae. JPMorgan Chase & Co. owns the largest percentage (17.3 percent) of multifamily loans among commercial banks, followed by New York Community Bancorp (7.5 percent, with the largest exposure to multifamily loans) and Wells Fargo & Co. (4.2 percent).
The GSEs have the lowest loan default rates at 0.1 percent or less, and commercial bank loan defaults have dropped from 4 percent in the second quarter of 2011 to 0.9 percent in the first quarter of 2015.