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Week of 5/11 - Multifamily Lending Update

Your Multifamily Lending Update by EM CAPTIAL LLC.

As previously mentioned noted, RealPage had forecasted more than 366,000 units to come this year. In Q1 nearly 70,000 units were delivered. Completions will not meet the initial target, though deliveries are expected to in at 250,000 units

GSE: Fannie/Freddie:

Agency loans remain in the mid 3% to low 4% range on a 10 year.

Fannie: Fannie Mae has the edge over Freddie on small loans. This is due to their lower-leveraged requests, more favorable rates and easing requirements for debt service reserves.

Freddie: Freddie remains more competitive on spreads. Freddie Mac SBL products have new temporary credit changes. The new rules include no path forward on deals with greater than 25% student or military concentration, they also require approval for borrowers that have been relieved through modification, workout, or forbearance.

CMBS: Making progress. As new transactions hit the market, new lending capacity is created. Old loans CMBS still weighing major lenders as they try and sell off nearly three quarters of a billion dollars on their balance sheet. Pricing remains better than the secondary market, though it is not near the pricing when they were originated. Time for a write-down?

Life Insurance Companies: More players are re-entering the game. Life lenders are paying close attention to collections for May as they slowly gain more confidence in the multifamily space.

FHA/HUD: Rates dropping slightly after a recent move in the base rate and have compressed 75 basis points since the end of March. Business is continuing to move along amid low rates, high refinance activity, and no shortage of new construction.

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