MBA reports Multifamily investments performing well

By
Mortgage and Lending with AAM Capital

Well darn......a little good news for my multifamily investment market again. I'll take any good news for now.

The Mortgage Bankers Association (MBA) confirmed the multifamily investment market is still performing well for both investors and lenders.

Although we have seen a small rise in multifamily delinquency rates in the second Q this year, last year was a record low in comparison for investors. The rise was less than expected though.

Our financial resources of CMBS, Fannie Mae, Freddie Mac, Life Insurance and commercial banks all reported lower than expected delinquencies given the environment. All together this financial group holds more than 80% of the outstanding multifamily investment loans.

The combined portfolio held by insurance companies has over 35,000 loans and $252 billion in outstanding balances and is in very good shape with only 23 loans reporting more than 60 days late. FDIC backed portfolio of $1.2 trillion contained $15 billion in total delinquent balances over 90 days late or just 1.18 percent delinquent. Many banks would take that in their lending portfolio right now.

This bodes well for my multi family investment market. Business is being originated as usual for the government backed multifamily programs but a few days slower than average. I’d recommend a minimum of a 60 day contract to ensure everyone sits tight on a purchase.

Refinancing the multifamily investments continue to pick up because historical income and performance is easily gauged. However, my agent referrals for refinancing have slowed down greatly for some reason even though we pay a co-origination fee. Still a lot of bank notes on 20 years out there especially with balloons.

___________________________

Multifamily Investment Experts


AAM Capital
5000 Alpha Lane
Chattanooga TN 37421

Office 423-870-2285
Toll Free 800-452-9287

AAM Capital

Rick Fitzgerald
Your Multi-Family Expert

 


 

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Find out why investors choose us. Multi family investment options include Fannie Mae, Insurance, CMBS AND Portfolio Lending.

commercial@aamonline.com
Fax 423-443-4784

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Rainmaker
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Kelly Willey
Coco Plum Real Estate, Kelly Willey, FLORIDA KEYS - Marathon, FL
Florida Keys Luxury Sales, Marathon, Key Colony

We don't see many multi family homes in this area but I understand FHA will finance up to 4 units....

 

Kelly Willey christian realtor reo expert Harford county

Oct 02, 2008 05:26 AM #1
Rainer
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Rick Fitzgerald
AAM Capital - Chattanooga, TN
The MultiFamily Expert

You are correct.  Getting tougher to buy a quadplex now a days.  Anything 5+ will be considered a commercial transaction.

Oct 02, 2008 05:48 AM #2
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Rick Fitzgerald

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