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Changes Ahead for Multifamily Borrowers

Inflation Deters Some Borrowers From Agency Lending

As we enter the second half of 2022, we’re seeing inflation deter some borrowers from agency lending towards alternative sources, such as debt funds, bridge funds, community bank loans, and life company loans. These alternative funding sources are becoming more competitive, with favorable terms providing higher proceeds to fund value-add or other investment strategies. Despite the competition, agency loans are still a favorable option for many borrowers, so Fannie Mae and Freddie Mac continue to fund.

In this GlobeSt. article, Drew McCreery discusses factors that agency lenders should be aware of. This includes new regulations, radon testing, and the approaching California SB-721 deadline.