Multifamily Originations Decline 40% in 2008: MBA
In 2008, lenders provided more than $88bn in new financing for multifamily properties, a 40% drop from 2007, according to a report from the Mortgage Bankers Association (MBA). The top five multifamily lenders in 2008 were PNC Real Estate, Wachovia, Wells Fargo Bank, Capmark Financial Group and Deutsche Bank Commercial Real Estate, according to the report. Multifamily volume was down in 2008, but Jamie Woodwell, the MBA’s vice president of commercial real estate research, said that there a broad market offered mortgages in the year. “There is a core group of dedicated multifamily lenders that originated a large number of loans in 2008,” Woodwell said. "In addition, there is a broad group of smaller institutions that each originated a small number of loans, but collectively offered borrowers a wide range of options." Woodwell added that 26% of lenders who made multifamily loans in 2008 made just one, and two-thirds made five or fewer. Write to Jon Prior.