In the five-year span from 2015 through 2019, the big lenders for multifamily were government-sponsored enterprises. In the first half of 2023, the same dynamic is again present, according to a report from MSCI.
In that five-year period, the average contribution of the GSEs was 54%, with national banks providing 10% and regional and local banks accounting for 13%. There was also significant lending by insurance companies, commercial mortgage-backed securities, as well as investor-driven lending such as debt funds, though all under 10% each.
In 2022, when heavy market activity was followed by increasing interest rates to battle inflation, only 38% of the lending was from GSEs, with regional and local banks making up 19%, investor-driven rising to 13% and national banks at 12%.
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