Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Beat Up Economy Leads to Declining Multifamily Lending

Lending plummets

multifamily lendingThe Mortgage Brokers Association just released their multifamily lending report, revealing that the dollar amount decreased between 2007 to 2008, plummeting to $88 billion in volume.
In retrospect, this makes perfect sense as the wheels grinded to a halt in lending across the board with the credit crunch and options for loan packages have had to adjust. According to MBA’s Vice President of Commercial Real Estate Research, “26 percent of lenders who made multifamily loans in 2008 made just one, and two-thirds made five or fewer.”

Regarding how 2009 will shape up, Nathan Hughes, Commercial Realtor and Business Broker with Bandazian & Holden said, “I don’t think that we can possibly achieve a much lower level of lending in 2009 than we saw in 2008 – some bankers have told me that they’ve been instructed to freeze any loans except for owner-occupied.  Lower lending means less movement (other than the change of ownership from individual owners to banks by foreclosure), and that necessarily means that my involvement as a sales agent in multi-family transactions is a bit more limited and that business diversification is even more necessary now.”

Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

8 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

Will Bed Bath & Beyond be the latest victim of this economy, or do they just have perpetual problems with their business model?

Business News

We all know and love the company NASA for their space exploration efforts, but how much of an economic impact do they have? Turns...

Business Finance

Another large spike in the consumer price index isn't good news for the economy, and the context of the data is more complicated this...

Business Finance

With a second consecutive quarter of declining GDP data, we are officially in a recession - are we?

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.