MBA Reports Multifamily Lending Hit $147.7 billion in 2007; Leading Lenders Part of Industry Consolidation

In 2007, 2,739 different multifamily lenders provided a total of more than $147.7 billion in financing for apartment buildings with five or more units, according to a report from the Mortgage Bankers Association (MBA). Lenders closed 48,577 individual loans, with an average loan size of $3 million. The average lender made 18 multifamily loans over the course of the year.

In terms of total dollar volume, the top five multifamily lenders in 2007 were Wachovia, Washington Mutual Bank, Deutsche Bank Commercial Real Estate, Capmark Financial Group, Inc., Wells Fargo Bank, N.A. The top three lenders in terms of the number of multifamily loans closed were Washington Mutual, Wells Fargo Bank, N.A., and Wachovia.

'2007 saw strong multifamily lending activity, but the market is changing significantly,' said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. 'In just the last two weeks, we've seen announcements of 2007's two leading multifamily lenders - Wachovia and Washington Mutual - being absorbed into other institutions.'

The MBA report is the most comprehensive view available of the multifamily lending market and includes:

A detailed summary of the $148 billion multifamily market,
Profiles of distinct market segments, including the very-small loan (loans of $1 million or less) segment,
A listing of 2,739 lenders who made multifamily loans in 2007, including their lending volume, number of loans made and average loan size, and
A listing of metropolitan areas and the volume of very-small loans made in each in 2007.

The report is based on data from the MBA 2007 Commercial Multifamily Annual Origination Volume Summation and the Home Mortgage Disclosure Act (HMDA). The MBA survey targets specialized commercial/multifamily originators and covered $508 billion in commercial/multifamily loans in 2007. The HMDA data adds multifamily loans from banks, thrifts and other institutions that meet certain single-family origination thresholds. When combined, the two datasets provide the most comprehensive assessment of the multifamily mortgage market available.

This publication is an example of the extensive offerings of real estate finance research produced by MBA.

For members of the media who wish to inquire and review this report, please contact Jason Vasquez at jvasquez@mortgagebankers.org.