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MBA Annual Report Reveals $5 Billion, 4 Percent Increase in Multifamily Property Lending in 2006

November 28, 2007

Washington, DC -The Mortgage Bankers Association (MBA) today released its 2006 Annual Report on Multifamily Lending, showing a $5 billion lending increase between 2005 and 2006. The diverse multifamily lending market grew by four percent, from $133 billion in closed loans in 2005 to $138 billion in 2006.

The report, which focuses on apartment buildings with five or more units, also indicated an average loan size of $2.7 million based on 50,959 loan originations.

"The growth in multifamily lending came amid different results for different market segments," said Senior Director of Commercial/Multifamily, Jamie Woodwell. "The large and mid-size loan market saw solid growth over the course of the year, while the smaller loan market saw a decline." The dollar volume of very small multifamily loans fell 13 percent between 2005 and 2006.

MBA's 2006 Annual Report on Multifamily Lending provides the most detailed description of the multifamily loan market and the lenders within it; tables listing all 2,761 multifamily lenders in 2006, their loan volumes and average loan sizes; information on the very-small loan market (loans of $1 million or less); and the volume of very small loans made in each Metropolitan Statistical Area. Copies of the report can be purchased by clicking here.

"Volume trends in the small and very-small multifamily loan markets closely parallel the single-family market," added Woodwell. "This connection will play a factor in the results for 2007 and beyond."

The report is based on data combined from the MBA 2006 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation and the Home Mortgage Disclosure Act (HMDA). The MBA survey, click here to purchase, targets specialized commercial/multifamily originators and covered $406 billion in combined commercial/multifamily loans in 2006. The HMDA data adds multifamily loans from banks, thrifts and other institutions that meet certain single-family origination thresholds. Together, the two datasets provide the most comprehensive assessment of the multifamily mortgage market ever available.

Source: MBA

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