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.
