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Multifamily Lending Brief: Q2 2015

Multifamily Lending Brief: Q2 2015

Multifamily Lending : Q2 2015

In the wake of the great recession, the entire financing environment shifted to benefit the multifamily industry. As such, MPF Research will provide high-level, but relevant updates on an on-going, quarterly basis. These updates include details on loan balances by lending category, overall market share, delinquency rates, as well as activity from Fannie Mae and Freddie Mac.

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• Looking at the entire lending environment, multifamily activity continues to outperform other types of bank lending, yielding a rate of 1.49.
• Commercial & Industrial and Commercial Real Estate followed behind, registering 1.20 and 1.15, respectively.

 

• The GSE/Agency category lending continues to lead other categories by overall market share of 41.4%. The Banks ranked second with 33% of overall market share.
• Given a highly-competitive lending environment, REITs recorded the greatest year-over-year growth of 125.9%, though REITs own a very small share of the market. More significantly, the Banks grew 17.3% compared to 4.8% growth from the GSE/Agency category.

Multifamily Lending

• Fannie Mae reported $14.7 billion of new business during Q2 2015; this translates into 213% growth from Q2 2014 as multifamily lending has accelerated.
• Similarly, Freddie Mac reported $13.2 billion of new business in Q2 2015, marginally lower than Fannie Mae, but still yielding significant growth of 222% when compared to 2Q 2015.

 

  Multifamily Market Share

Multifamily Lending

• New York Community Bancorp ranks 2nd in terms of overall market share (7.7%) and 1st for greatest exposure to multifamily (65.7%). The bank has $23.8 billion in multifamily assets on its balance sheet.
• Market share for total multifamily lending is led by JP Morgan Chase with 17.1% as of Q2 2015. This translates in $54.5 billion, just 6.9% of the firm’s total assets.


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