The origination of government-insured mortgages that are secured by apartment buildings has soared to an all-time high.
The Federal Housing Administration has endorsed 1,100 multifamily loans since its fiscal year started on Oct. 1, 2010.
That works out to $10.5 billion in volume.
Annual multifamily production has only surpassed $10 trillion one other time.
Based on the number of loans, volume is more than seven times the level of production three years ago.
“While we’re seeing record volume, we also recognize we have to accelerate the time it takes us to process these applications so we continue to meet this demand at the very time the market needs us the most,” FHA Acting Commissioner Carol Galante said in the report.
FHA hopes to make multifamily production less time-consuming with the release today of its Multifamily Accelerated Processing Guide. In addition to standardizing the application of program requirements across all processing offices, the MAP guide delegates more underwriting responsibility to approved MAP lenders.
