Your Multifamily Lending Update by EM CAPTIAL LLC.
Fannie Mae:. Last week, Fannie’s quote volumes hit a post-COVID-19 high watermark. Fannie has won on the lower leverage side with their SARM products. The falling Green treasury floor benefit is pushing loans back towards conventional.
Freddie Mac: Freddie Mac saw app volumes that they haven’t seen since March with a good mix of fixed and adjustable rate apps on the Freddie side
CMBS: $1.6 billion of conduit bonds were recently sold in the public markets. The CMBS bond market has seen little volatility which has allowed spreads to remain tight. AAA spreads on the recent. The single asset single borrower market has remained strong with $1.7 billion of issuance over the past two weeks.
Life Insurance Companies: Life companies are shifting focus to their 2021 allocations. Competition is continues and pricing remains attractive. Some lenders are quoting 5-year money down to 1.85% and are offering flex pre-pay such as YM years 1-3 then par. The best 10-year pricing is between 2.0-2.25% for the highest quality deals. Moderate leverage is pricing in the 2.50-2.75% range. Small loan lenders ($2.0-7.0 million) are more in the 3.0-3.25% range. Life companies with floating rate bridge money are pricing multifamily to 75% LTC at between 3.0-4.25% depending on specific deal parameters. There seems to be more interest in construction/perm loans with max LTC at 65% and pricing between 3.75-4.25%.
FHA/HUD: FHA insured volume is up 56% from fiscal year 2019 largely focused on refinancing.