Although residential originations fell by 20% in the third quarter — compared to the same period last year — multifamily production went in the opposite direction, rising 80%, according to figures compiled by National Mortgage News and the Quarterly Data Report.
However, the results are incomplete to some degree because some firms including Wells Fargo & Co., would not disclose their production figures in this category.
Still, some of the firms that participated in NMN's survey had stellar results. CitiMortgage, for instance, originated $523 million in multifamily mortgages, a 69% jump from 3Q 2010. (Citi's parent is headquartered in New York City, arguably the nation's best rental market for landlords.)
Other standouts include Flushing Savings Bank, Lake Success, N.Y., which saw production rise 58%, and Bank Mutual Corp., Milwaukee, Wisc., which experienced a 67% rise in multifamily.
But not all lenders flourished. TD Banknorth, Fallmouth, Me., saw fundings decline by 30% to $71 million.
The boom in production does not come as a total surprise. Over the past three years, the nation's foreclosure crisis has turned millions of former home owners into renters. This in turn has fed a strong rental market, one that has caused multifamily housing starts to rise dramatically.
