A recently published Mortgage Bankers Association (MBA) report showed commercial and multifamily loan originations rose 19 percent in the second quarter of 2022 compared to last year. Folded within those numbers, both retail and hotel originations jumped significantly, leading to the overall rise in lending volumes. Retail numbers rose by 108 percent, while hotels and multifamily rose by 37 and 24 percent, respectively.
Fannie and Freddie numbers also ticked up, with the federal lenders rising by 29 percent, while investor-driven lending firms, including mortgage REITs, debt funds and specialty finance companies, collectively rose by 12 percent.
7 Facts: How Federal Interest Rate Increases Affect CRE Multifamily Housing
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A walk-through showing other areas of growth within CRE multifamily housing to potentially offset interest rate increases.
These numbers parallel similar upticks experienced by GoDocs, which has growth rates of 60 percent YTD in 2022 with multifamily lenders. “We expect this momentum to continue, despite some macroeconomic uncertainty right now,” asserts GoDocs CEO, Steve Butler. “We are confident that our multifamily lenders will continue to experience growth at rates over 50 percent for the remainder of the year.”
While rising inflation has caused some development companies to reassess their project schedules, multifamily lending is showing little sign of slowing down. This is due to several factors, including strong rental rates, the increasing appeal of workforce housing, and opportunities currently available in repurposing vacant office space.
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The buoyed numbers from Fannie Mae and Freddie Mac also bode well for GoDocs, an approved solution at Fannie Mae. As the only digital document preparation platform licensed by Fannie Mae to automate closing documents for multifamily loans, the company expects to ride this momentum as well.
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