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Multifamily Finance Blog
Last updated on Feb 19, 2023
8 min read
by Content Team

The Top 10 Agency Apartment Lenders of 2018-2019

In 2018, agency lenders Fannie Mae and Freddie Mac issued a combined $143 billion in multifamily loans. While Fannie Mae issued more than $65 billion in multifamily financing, Freddie Mac Multifamily issued approximately $78 billion in loans. Overall, Fannie Mae origination is slightly down from 2017, in which the agency closed more than $67 billion in multifamily financing. In contrast, Freddie Mac Multifamily saw a noticeable rise in originations, with an approximate $4.8 billion growth from 2017’s $73.2 billion, itself a nearly 30% jump from $56.8 billion in loans originated in 2016.

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In this article:
  1. The Largest Fannie Mae® and Freddie Mac® Apartment Lenders of 2018-2019
  2. 1. CBRE Multifamily Capital: $19.79 Billion
  3. 2. Berkadia Commercial Mortgage: $16.46 Billion
  4. 3. Walker and Dunlop: $14.01 Billion
  5. 4. Wells Fargo: $12.96 Billion
  6. 5. KeyBank: $9.41 Billion
  7. 6. Newmark Knight Frank: $7.96 Billion
  8. 7. Capital One: $7.35 Billion
  9. 8. HFF: $7.2 Billion
  10. 9. Greystone Servicing Corporation: $6.51 Billion
  11. 10. Arbor Commercial Mortgage: $4.51 Billion
  12. Related Questions
  13. Get Financing

The Largest Fannie Mae® and Freddie Mac® Apartment Lenders of 2018-2019

In 2018, agency lenders Fannie Mae and Freddie Mac® issued a combined $143 billion in multifamily loans. While Fannie Mae issued more than $65 billion in multifamily financing, Freddie Mac Multifamily issued approximately $78 billion in loans. Overall, Fannie Mae origination is slightly down from 2017, during which the agency closed more than $67 billion in apartment financing. In contrast, Freddie Mac Multifamily saw a noticeable rise in originations, with an approximate $4.8 billion in lending growth from 2017’s $73.2 billion. That $73.2 billion is itself a nearly 30% jump from the $56.8 billion in apartment loans Freddie Mac originated in 2016.  

As of Q1 2019, Fannie Mae Multifamily reported $16.9 billion in apartment loan issuances. If the agency performs equally well over the next three quarters, it could close the year out with $67.6 billion in multifamily originations, a slight increase from its 2017 numbers. While exact Q1 2019 multifamily performance numbers weren’t readily available from Freddie Mac, the agency reports 14% origination growth from Q1 2018- to Q1 2019, and expects overall growth from 2018-2019, albeit at a slower rate than the growth from 2017-2018. While we can’t say for sure what the rest of 2019 has in store, we don’t suspect this list will change much over the next 9-12 months. From 2017-2018, only 1-2 names on the agencies’ top 10 lists changed, and there’s no reason to suspect that many new players will be entering the top 10 list during 2019.

1. CBRE Multifamily Capital: $19.79 Billion

With nearly $20 billion in loan originations, CBRE Multifamily Capital, a subsidiary of CBRE Group, Inc., was the largest agency apartment lender of 2018. During that year, the firm originated $13.69 billion in Freddie Mac multifamily loans and $6.1 billion in Fannie Mae multifamily financing. CBRE Multifamily also ranked as the #1 Freddie Mac Small Balance Loan lender of 2018. In addition, the firm ranked as the #2 Fannie Mae affordable housing lender of 2018. The company also ranked #4 on Fannie Mae’s lists of top green financing and seniors housing lenders, while ranking #3 on their list of student housing lenders.

In addition to its agency lending services, CBRE also originates HUD/FHA apartment loans, CMBS loans, and a variety of other types of multifamily and commercial financing. While lending is one of the firm’s core focuses, it also provides a diverse array of real estate services, including leasing and appraisal services, property and investment management, and real estate development services.

CBRE has nearly 500 offices worldwide, and manages approximately $105 billion in assets. The company has an estimated 80,000 employees, and reported a revenue of $21.3 billion during 2018. CBRE is headquartered in Los Angeles, California, and is currently headed by CEO Robert Sulentic.

2. Berkadia Commercial Mortgage: $16.46 Billion

Berkadia Commercial Mortgage, the second largest agency lender of 2018, is a 50/50 venture between the financial giants Jeffries and Berkshire Hathaway. In 2018, the firm originated $9.86 billion in Freddie Mac multifamily loans, and $6.6 billion in Fannie Mae multifamily financing. In addition to being the #2 agency lender of 2018, the firm was also ranked as the #3 Freddie Mac Seniors Housing Lender of 2018.

Berkadia is currently the largest non-bank commercial mortgage servicer in the United States, and prides itself on its lending flexibility and its adoption of the latest technologies on the market. In addition to agency lending, Berkadia also originates HUD/FHA multifamily financing, and offers a variety of commercial real estate services, including investment sales, land services, and mortgage banking services related to the senior housing, student housing, and hospitality industries. Berkadia commercial mortgage is headquartered in New York City and is currently headed by CEO Justin Wheeler.

3. Walker and Dunlop: $14.01 Billion

Walker & Dunlop, Inc., was the third largest agency lender of 2018, having originated $7.11 billion in Freddie Mac multifamily loans, and $6.9 billion in Fannie Mae multifamily financing. In addition to its thriving lending business, Walker & Dunlop also provides commercial and multifamily real estate consulting, asset management, and valuation services, and currently directly services approximately $75 billion of loans.

The firm, one of the largest non-bank commercial real estate lenders in the U.S., is a member of the S&P 600 and has 29 offices across the country. In 2018, the firm reported revenues of approximately $725 million and had 723 employees. Walker & Dunlop is headquartered in Bethesda, Maryland, and is currently headed by Chairman and CEO Willy Walker.

4. Wells Fargo: $12.96 Billion

Wells-Fargo is currently the world's fourth-largest bank by market capitalization, with approximately $1.87 trillion in assets. In 2018, the bank ranked as the #4 agency lender in the U.S., originating $4.86 billion in Freddie Mac loans and $8.1 billion in Fannie Mae loans. Wells-Fargo also ranked as the #1 seller of Freddie Mac Targeted Affordable Housing Loans in 2018, while ranking #2 on Freddie Mac’s list of sellers for Seniors Housing financing.

In 2018, the firm reported a revenue of $86.4 billion, and an income of $22.39 billion. Wells-Fargo is headquartered in San Francisco, California, and is currently headed by interim CEO C. Allen Parker.

5. KeyBank: $9.41 Billion

KeyBank is a major regional bank, with nearly 1,200 branches across the United States. The firm was ranked the 4th largest agency lender of 2018, having originated $6.01 billion in Freddie Mac multifamily loans and $3.4 billion in Fannie Mae multifamily financing. Keybank also ranked as the #1 seller of Freddie Mac Seniors Housing Loans, and ranked #3 on Freddie Mac’s list of Conventional Structured Financing sellers.

The company is a member of the S&P 500, and reported $7.39 billion of revenue in 2018. KeyBank is headquartered in Cleveland, Ohio, and is currently headed by Chairwoman and CEO Beth E. Mooney.

6. Newmark Knight Frank: $7.96 Billion

In 2018, Newmark Knight Frank originated $4.3 billion in Fannie Mae multifamily loans, and $3.66 billion in Freddie Mac multifamily loans, making it the 6th largest agency lender in the U.S. that year. During 2018, the firm was also ranked as the #1 Freddie Mac Conventional seller in the Southeast United States. Newmark Knight Frank is a subsidiary of BDG Partners, Inc., though both are publicly traded companies.

In addition to providing agency lending services, Newmark Knight Frank also provides representation services to tenants and landlords, real estate appraisal and valuation services, and project, facilities, and property management, among a variety of other services. Newmark Knight Frank is headquartered in New York City and is currently headed by CEO Barry M. Gosin.

7. Capital One: $7.35 Billion

Capital One is currently ranked as the 10th on the largest bank in the U.S., with more than $372 billion in assets. In 2018, Capital One issued $3.55 billion of Freddie Mac multifamily loans, and $3.8 billion in Fannie Mae multifamily financing. That year, the bank was ranked as the #1 Freddie Mac Conventional Lender in the Northeast. Capital One is a member of the Fortune 100, and like many other firms on this list, is a publicly traded company. As of 2018, the bank had 755 branches across the U.S., and reported employing more than 49,000 people. Capital One is headquartered in Richmond, Virginia, and is currently lead by President and CEO Richard Fairbank.

8. HFF: $7.2 Billion

HFF markets itself as “one of the largest and most successful commercial real estate capital intermediaries serving the United States and Western Europe.” In 2018, the lender originated $7.2 billion in Freddie Mac multifamily financing, though its Fannie Mae multifamily origination volume was not readily available (it did not reach Fannie Mae’s Top 10 lender list in 2017 or 2018). HFF is a member of the S&P 600, and, in 2018, reported revenues of $662 million and assets of $858 million. HFF is headquartered in Dallas, Texas and is currently lead by CEO Mark D. Gibson, Jr.

9. Greystone Servicing Corporation: $6.51 Billion

While Greystone may not be first on this list, it’s considered one of the most highly acclaimed multifamily lenders on the market today, having been ranked the #1 HUD/FHA multifamily and healthcare lender of 2018. That year, the firm originated $3.9 billion in Fannie Mae multifamily loans and $2.61 billion of Freddie Mac multifamily loans. In addition to HUD/FHA and agency apartment loans, Greystone also offers CMBS financing, as well as a host of investment sales, advisory, and management services, including commercial and healthcare property management and EB-5 investment and affordable housing advisory. Greystone is headquartered in New York City and is currently lead by CEO Stephen Rosenberg.

10. Arbor Commercial Mortgage: $4.51 Billion

In 2018, Arbor originated $3.3 billion in Fannie Mae multifamily loans, and $1.5 billion in Freddie Mac multifamily loans. That year, the company was ranked as the #2 lender for Freddie Mac Small Balance Loans. Much like Greystone, Arbor also has a highly developed HUD/FHA lending division, and is a HUD-approved LIHTC (Low-Income Housing Tax Credit) lender. Arbor also has a variety of other well-developed niches, including mezzanine financing/preferred equity, CMBS, and seniors healthcare lending. As a lender, the firm’s main competitive edge is the fact that it offers in-house servicing for many of its loans, promoting a strong borrower/lender relationship and, potentially, better communication and collaboration between both parties.

Arbor is also a strong proponent of technology, and is gaining recognition for its all-agency online loan origination platform, called ALEX, which includes a loan evaluation session with a loan officer, live help, and other technical tools for borrowers. Arbor is headquartered in Uniondale, NY, and is currently lead by CEO Ivan Kaufman.

Related Questions

What are the best multifamily loan options for 2018-2019?

The best multifamily loan options for 2018-2019 are HUD/FHA multifamily loans. According to this article, HUD's multifamily loan programs offer high leverage, non-recourse, fully amortizing financing at extremely competitive rates. The article also lists the top 10 HUD/FHA multifamily lenders in the industry today.

For more information on the best multifamily lenders of 2023, check out this article. It provides a list of the top lenders of 2023 and suggests that any of the lenders mentioned are great choices for your next multifamily deal.

What are the advantages of using an agency apartment lender?

The advantages of using an agency apartment lender include:

  • Non-recourse financing
  • Leverage up to 80%, with up to 75% for cash-out refinances
  • Long amortizations with lots of flexibility
  • Low rates
  • Plethora of loan types offered, with specialized loans for affordable/LIHTC properties, senior living facilities, cooperative apartments, student housing, and more
  • Lower down payments than other types of loans

For more information, please see Agency Loans for Multifamily Properties: What Borrowers Need to Know and 8 Reasons Why You Should Consider an Agency Loan.

What are the differences between agency and non-agency apartment loans?

Agency loans are generally non-recourse, meaning that the borrower is not personally liable for the loan. They also offer higher leverage, with up to 80% for most loans, and up to 75% for cash-out refinances. Agency loans also offer long amortizations and low rates. In comparison, non-agency loans are typically full-recourse, with lower leverage and shorter amortizations. Non-agency loans may also have higher rates than agency loans.

For more information, see Agency Loans for Multifamily Properties: What Borrowers Need to Know and HUD/FHA Multifamily Loans.

What are the requirements for obtaining an agency apartment loan?

In order to obtain an agency apartment loan, borrowers typically need to have good credit (typically a 660-680 minimum FICO score), and a net worth of at least 100% of the loan amount, not including retirement accounts. They should also have liquidity of at least 10% of the total loan amount. Additionally, the property itself will need to have a debt service coverage ratio or DSCR, of 1.25-1.30x. This means that the building’s income will need to exceed its annual debt service by at least 25-30%.

Source: Agency Loans for Multifamily Properties: What Borrowers Need to Know and How to Purchase an Apartment Property

What are the current interest rates for agency apartment loans?

The current interest rates for agency apartment loans vary significantly between loan products. According to this source, U.S. Treasury rates, including the 10-year and 5-year rates that are the basis for many multifamily loan interest rates, have fallen over the last 12 months. For example, in July 2018, the 10-year UST was 2.95%, while in July 2019, it had fallen to 2.08%. However, in contrast, the Federal Funds Rate has increased slightly over the same period, going from 1.91% to 2.38%.

Overall, it is an excellent time to invest in apartment properties. The national vacancy rate is still low, and the economy is seemingly doing quite well. While the delivery of new units is still high (though it’s fallen slightly), job growth means that demand is still high enough to avoid a large excess of supply. And, perhaps just as importantly, interest rates are still very low, which means it could be a great time for borrowers to take advantage and get into the multifamily market before rates rise once again.

What are the most common terms for agency apartment loans?

Agency loans for apartment investors typically offer floating and fixed-rate options with 3, 5, 7, 10+ year terms, up to 30 years amortization, 80% maximum LTV, and a minimum DSCR of 1.25x. Non-recourse loans with standard “bad boy” carve-outs are available, and early rate-lock options are available for varying durations. Prepayment options include yield maintenance, defeasance, and step-downs, which vary by loan type. Source and Source.

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