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Multifamily Lending Update Week of 9/14

Week of 9/14/20 Multifamily Lending Update

Your Multifamily Lending Update by EM CAPTIAL LLC.

Fannie/Freddie -

August volumes for Fannie and Freddie came in lower than expected. Analysts expect volumes to increase in the 4th quarter though expectations for 2021 still remain uncertain.

Freddie: Freddie recently announced that conventional products under $7.5 million will have pricing and debt service requirements in line with their SBL products.

CMBS: Ample liquidity in the secondary market has provided pricing for tighter loan spreads in the 250-300 basis points range. Multifamily remains in the highest demanded CMBS product as leverage hovers in the 65% range.

Life Insurance Companies: Rates remain ultra-competitive, some seeing quotes in the low 2% -3% range. Some lenders have taken more risk in leverage requirements as they increase to about 70-75%.

FHA/HUD: Applications remain at all-time highs as rates sit at record lows. Rates remain at all-time lows as volume remains high.

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