Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 31 October 2019

CMBS Conduit Lenders Get More Competitive in Multifamily Lending Business

CMBS conduit lenders are having more success originating loans against multifamily properties, in large part because of how the Federal Housing Finance Agency has revamped the lending caps it imposes on Fannie Mae and Freddie Mac. So far this year, 12.25 percent of all conduit loans have been backed by apartment properties. That's up from 10.74 percent for all of last year.

Commercial Real Estate Direct Staff Report

CMBS conduit lenders are having more success originating loans against multifamily properties, in large part because of the Federal Housing Finance Agency's recent revamping of the lending caps it imposes on Fannie Mae and Freddie Mac.

So far this year, $4.5 billion, or 12.25 percent, of the $36.7 billion of the loans issued through CMBS conduit deals have been backed by multifamily properties. That contrasts with the $4.3 billion, or 10.74 percent, concentration last year, when $40.2 billion of loans were securitized through conduit deals.

The thinking is that conduit lenders will continue to make inroads into the multifamily sector, particularly when it comes to lending against properties not classified as affordable housing, as the housing-finance agencies become less aggressive.

The regulator last month set a $100 billion lending cap on the two housing-finance agencies through the end of next year. That would be in line with the $35 billion annual cap it previously had in place for each agency. But it has eliminated any exclusions. That means loans under their respective "green" programs, which fund energy and water efficiency improvements, are no longer exempt from the caps.

Those exclusions helped both fund far more than $35 billion of loans last year. Freddie, for instance, funded a record $77.5 billion of...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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