CoStar Group's Mark Heschmeyer looks at the capital markets landscape for multifamily loans and finds a mixed bag.
The government-sponsored enterprises continue to fuel the market, especially in light of last week's news that the Federal Housing Finance Agency has raised their lending caps for 2016. Meanwhile, banks continue to pull back on their appetite for multifamily, the result of increased regulatory scrutiny:
The decline in bank lending has much to do with browbeating from federal regulators, according to Willy Walker, chairman and CEO of Walker & Dunlop, one of the largest CRE lenders in the country.
"The numbers don’t surprise me,” Walker said. "The Office of the Comptroller of the Currency came out in May saying they were concerned with CRE exposure at commercial banks.”