the-commercial-investor.com

The Wall Street Journal ran a lead article yesterday on the tight link between the current apartment lending market and our crippled friend Fannie Mae. Here are some interesting stats …

• In 2006 Fannie Mae originated  just 34% of apartment loans
• In 2008 that share rose to 84% !! – my oh my
• Current delinquencies are at only 1.6% on the $4.5B of apartment loans that mature in 2010 – good
• Fannie and Freddie only back $300B in apartment loans … as opposed to the $5 Trillion in SFR loans they hold – good
• $180B of Fannie’s apartment loans were originated at the top of the market in 2007 – not so good

So riddle me this …

with Fannie and Freddie as basically the only functioning multifamily lenders in the nation … how will the government continue to support them in 2010? At least we can play the political card of supporting “affordable housing”. I would expect that Apartments would garner the same level of support the SFR markets have received to this point.

And I wonder … won-won-won-won- wonder when the banks and other traditional apartment lending sources will jump back into the pool … if ever?

Here’s the full article (note: you have to be a WSJ subscriber to see the whole thing)

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