Multifamily Lending Update Week of 9/14
Week of 9/14/20 Multifamily Lending Update
Your Multifamily Lending Update by EM CAPTIAL LLC.
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.