Beat Up Economy Leads to Declining Multifamily Lending
Lending plummets
The Mortgage Brokers Association just released their multifamily lending report, revealing that the dollar amount decreased between 2007 to 2008, plummeting to $88 billion in volume.
In retrospect, this makes perfect sense as the wheels grinded to a halt in lending across the board with the credit crunch and options for loan packages have had to adjust. According to MBA’s Vice President of Commercial Real Estate Research, “26 percent of lenders who made multifamily loans in 2008 made just one, and two-thirds made five or fewer.”
Regarding how 2009 will shape up, Nathan Hughes, Commercial Realtor and Business Broker with Bandazian & Holden said, “I don’t think that we can possibly achieve a much lower level of lending in 2009 than we saw in 2008 – some bankers have told me that they’ve been instructed to freeze any loans except for owner-occupied. Lower lending means less movement (other than the change of ownership from individual owners to banks by foreclosure), and that necessarily means that my involvement as a sales agent in multi-family transactions is a bit more limited and that business diversification is even more necessary now.”
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This article published on Tuesday, November 24th, 2009 at 12:01 am | Contact the editor
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AGBeat Editor-in-Chief: Lani, named one of Real Estate’s 100 Most Influential, as well as 12 Most Influential Women in Real Estate, is a business writer hailing from the great state of Texas in the city of Austin. As a digital native, Lani is immersed not only in advanced technologies and new media, but is also a stats nerd often burried in piles of reports. Lani is a proven leader, thoughtful speaker, and vested partner at AGBeat.
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Beat Up Economy Leads to Declining Multifamily Lending: Lending plummets
The Mortgage Brokers Association just rele… http://bit.ly/7dsiwN
Beat Up Economy Leads to Declining Multifamily Lending: Lending plummets
The Mortgage Brokers Association just rele… http://bit.ly/7dsiwN
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That's me quoted in that @agentgenius article by @LaniAR! "Beat Up Economy Leads to Declining Multifamily Lending" http://bit.ly/4XfGxF
Beat Up Economy Leads to Declining Multifamily Lending: http://ow.ly/Fcmo