Specifically, those two organizations funded 28.8% of the dollaramount, or about $9.4 billion of the $32.6 billion. Based on thenumber of loans, the pair accounted for 30.6% of all loans, or1,154 of 3,767 loans.

Since MBAA started surveying its members about two years ago,life insurance companies had been the traditional leader in loanoriginations. But they fell to third in this year by a dollaramount, as conduits provided 24.3% in originations, and theinsurance companies provided 22.9%. For the first half of 2000,Fannie and Freddie provided only 18.6%, while conduits provided23.8% and life companies led the way with 28.5%.

The reason for the strength of Fannie Mae and Freddie Mac is theflight to quality that investors think multifamily propertiesprovide. Jeanette Rice of Lend Lease Real Estate Investments says,"In contrast to the office and industrial market, the apartmentmarket is holding up very well in the weaker economy." Rice is thechairwoman of MBAA's commercial real estate finance researchcommittee. Rice adds that, although mortgage rates are generallyvery low, economic uncertainty is keeping families in apartmentsversus taking advantage of the low rates.