By KIMBERLEY HAAS
Programs that support ownership of multifamily properties are estimated to make up almost 30% of homebuyer assistance offerings and that may present unique opportunities in markets strapped for inventory.
According to the Down Payment Resource’s Homeownership Program Index, 33 new programs supporting multifamily homebuyers and builders were added in Q4 2022.
Multifamily programs now make up 29.3% of all available assistance offerings, a 5.5% increase over Q3 2022, according to the index.
Sean Moss, executive vice president of product and operations at Down Payment Resource, told The Mortgage Note that even first-time homebuyers can qualify for down payment assistance and become both an owner and a landlord at the same time.
Moss said the buyer receiving the…
Multifamily saw a stunning reversal in the fourth quarter of 2022 as apartment supply finally surpassed demand, creating a “swift and unprecedented” downturn. A new report from Apartments.com found that multifamily fundamentals declined in Q4, driven largely by limited absorption and supply/demand imbalances. “We ended the year with absorption barely remaining positive and vacancy rates trending upwards. As 2022 progressed, economic uncertainty suppressed household formations which limited multifamily demand,” said Jay Lybik, National Director of Multifamily Analytics at CoStar Group, which owns Apartments.com. “With 2023’s national forecast predicting the highest new supply totals since the 1980s, expect vacancy to rise above 7% and rent growth to push much lower.” More than 95,000 new units were delivered last quarter but many…
Rent growth decelerated for the fifth straight month, but renters in lower-priced units are still feeling the squeeze as homeownership remains out of reach for most Americans. Single-family rents increased only 10.2% YOY in September, down from 13.9% in April 2022, according to recent data from CoreLogic. This is still double the pre-pandemic growth rate, but moving in the right direction. “High mortgage interest rates may be causing potential homebuyers to hit pause and remain renters, keeping pressure on rent prices. However, the monthly rent change was negative in September, resuming the typical seasonal pattern for the first time since 2019, which could signal the beginning of rent price growth normalization,” said Molly Boesel, principal economist at CoreLogic. Declining rents…
Freddie Mac Multifamily has promoted two new underwriting vice presidents, the GSE announced in a press release. Caitlin Myhre has been promoted to vice president, Risk Distribution & Credit, where she will also oversee underwriting for structured offerings. She has worked for Freddie Mac since 2010, serving in multiple underwriting positions. In 2018, she left to work for Redwood Trust, a mortgage REIT, where she focused on its multifamily investment portfolio. In 2020, she came back to Freddie Mac as senior director of Underwriting & Credit for structured products. Myhre holds a Bachelor of Science in Real Estate from DePaul University. Adam Monti will now serve as vice president, Conventional Underwriting. He will oversee underwriting and credit for conventional loans…
Ian Ouwerkerk has been named Freddie Mac Multifamily’s SVP of Underwriting and Credit, the GSE announced in a press release. He has served as interim SVP since Q1 2022. Ouwerkerk joined Freddie Mac in 2008. He previously served as VP of Multifamily underwriting and senior director of underwriting for the Southeastern region. As VP of Underwriting and Credit, he focuses on ensuring the quality of Multifamily loans. He also oversees large regional pool transactions and balances credit risk management and solutions for sponsors and lenders. Prior to joining the GSE, Ouwerkerk worked as a commercial real estate broker. He has a Bachelor of Business Administration from Acadia University. “Ian is a strong leader with a proven track record implementing strategic,…
Investment opportunities in multifamily housing slipped in Q1 2022, with the Freddie Mac Multifamily Apartment Investment Market Index (AIMI) falling by 4.8% from Q4 2021 and 2.4% year-over-year. AIMI analyzes multifamily rental income growth, property price growth, and mortgage rates to measure multifamily market investment conditions. A decline such as this indicates that attractive investment opportunities are becoming more difficult to find. For the second quarter in a row, increases in net operating income (NOI) were overwhelmed by property price growth and rising interest rates. AIMI fell nationally and in 18 of the 25 individual markets analyzed by Freddie Mac. Only seven markets experienced growth. Quarter-over-quarter NOI grew 2.5% and was up in every metro. Miami saw the fastest increase…
Commercial and multifamily delinquencies fell in Q1 2022, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. MBA looked at commercial/multifamily delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. These groups hold more than 80% of outstanding debt in these categories. The number of banks and thrifts overdue by 90 or more days fell to 0.56% from Q4 2021. The number of life company portfolios 60 or more days late rose slightly to 0.05%, while Fannie Mae fell to 0.38%. Freddie Mac remained unchanged at 0.08%. CMBS that were 30 or more days delinquent or in REO dropped to 3.36%. “Commercial…
Commercial and multifamily mortgage loan originations rose 72% YOY in Q1 2022, though they were down 39% from Q4 2021 due to seasonality trends, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. “The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 carried into the first quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The continued growth in lending activity is the result of the ongoing strong demand for certain property types like industrial and multifamily, as well as renewed interest in other property types that saw more dramatic declines during the early stages of the pandemic, such as hotel and retail.” Demand for hotel…
Investment opportunities in multifamily housing lost some steam in Q4 2021, with the Freddie Mac Multifamily Apartment Investment Market Index (AIMI) falling by 4.8% from Q3 and 2.4% year-over-year. AIMI analyzes multifamily rental income growth, property price growth, and mortgage rates to measure multifamily market investment conditions. A decline such as this indicates that attractive investment opportunities are becoming more difficult to find. The report suggests that record multifamily price appreciation and rising mortgage rates offset net operating incomes (NOI), despite “unprecedented” income growth for multifamily investors. Property prices grew by 19.6% YOY, while NOI grew by only 17.7%. “The year-over-year AIMI decline shows us that it may be more difficult now to find attractive multifamily investment opportunities in some…
Commercial and multifamily mortgage loan originations jumped in 2021 and are expected to continue booming in 2022, the Mortgage Bankers Association (MBA) reported at its 2022 Commercial/Multifamily Finance Convention and Expo. Originations rose 79% YOY in Q4 2021 and 44% from Q3. A preliminary measure of commercial and multifamily mortgage bankers’ originations volumes found 2021 activity to be 67% higher than 2020’s. “The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales…
