Multifamily

Fewer of these mortgages are paying off, adding to the amount of credit on investors' books, the Mortgage Bankers Association said.

Decreased availability of bank capital for new commercial construction helped slow activity from the previous nine quarters, according to a new report.

The work-from-home era has wrecked old assumptions about the need for office space, leaving an unprofitable glut in the market, Willy Walker said.

But overall volume is still expected to be 38% lower than 2022's commercial real estate originations, as higher interest rates remain a drag.

Lenders including Goldman Sachs Group Inc. and JPMorgan Chase & Co. have been trying to sell debt backed by offices, hotels and even apartments in recent months, but many are finding that tidying up loan books is no easy feat when concerns about commercial real estate have surged.

While multifamily late payments were flat, hotel properties continued to improve but office performance deteriorated significantly from the first quarter, the Mortgage Bankers Association said.

The Federal Housing Administration plans to review and possibly adjust the large loan limit, which determines which mortgages need additional underwriting more regularly going forward.

In 2026, Christine Chandler will join a small but growing number of women that will have occupied the organization's top slot.

But when compared past periods of upheaval, those rates remain relatively low, the Mortgage Bankers Association report showed.

The latest forecast calls for $375 billion of lending on properties with five or more units, with total commercial originations of $654 billion.

Economic uncertainty slowed multifamily and commercial activity to the lowest level in 9 years, the Mortgage Bankers Association said.

Economic turbulence affected borrowers during the quarter and will likely impact their ability to refinance maturing loans, the Mortgage Bankers Association said.

The portfolio includes mainly commercial real estate loans, commercial loans and a small pool of single–family residential loans.

Weaker economic conditions, rising interest rates and expected changes in investment returns drove the reduced expectations, the Mortgage Bankers Association said.

The Federal Housing Finance Agency will be looking at the government-sponsored enterprises as a means of doing more to address renter affordability challenges.

The reductions in the multifamily goals for 2023 to 2024 compared to those from the period before suggest that these goals will have little, if any, impact on the GSEs' multifamily operations in future years, writes a former principal economist with the Federal Housing Finance Agency.

The sector is not immune to the same economic instability that affects the single-family residential market, the Mortgage Bankers Association said.

The Federal Housing Finance Agency is reducing the amount lenders can sell to a government-sponsored enterprise by $3 billion next year.

The Federal Housing Administration also announced it would incorporate similar borrower history into its underwriting beginning at the end of October.

A "Big 3" credit bureau is testing a direct data feed into a FICO score, and a top multifamily mortgage lender signed a multiyear contract with a high-profile fintech platform.