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.
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