Multifamily

Lower interest rates are expected to drive financing secured by income-producing properties to new heights by year-end, according to the Mortgage Bankers Association.

By 2030, about 20% of the U.S. population will be over age 65, up from 15% in 2016, according to the Census Bureau.

While delinquent loans in commercial mortgage-backed securities continued trending downward overall, there was an uptick in the rate for more recent originations, a Standard & Poor's report noted.

Extell Development, facing an Aug. 30 maturity for a construction loan, signed an agreement for a new loan on the New York property, using the unsold units in the 815-apartment project as collateral.

New-home construction unexpectedly fell in July for a third month on another drop in starts of apartment buildings that masked a gain in single-family units.

All of the loans were originated by Greystone, an investment group based in New York that originated multifamily and health care facility loans for Fannie Mae, Freddie Mac, the FHA and various commercial mortgage-backed securities.

Behind strong job markets, the shortage in housing supply and more millennials moving out, 2019 projects to be a record year for multifamily originations.

It’s hard to time the next economic slowdown. But lenders, many with lingering memories of the financial crisis, are taking steps now to limit exposure in commercial real estate, construction and other loan segments.

Bankers are downplaying such concerns, but others say a sharp decline in values on rent-regulated buildings means landlords will have less cash flow to acquire new properties.

The Delaware company, best known for issuing prepaid cards, has ramped up commercial real estate securitizations. The shift promises to deliver big fees, but it could also cause headaches if defaults spike.