Top Mortgage Banking Companies 2020
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By Maddie Winship, Senior Research Analyst, Yardi Matrix
Economic uncertainties – brought on by trade tensions and weakening global markets – led the Federal Reserve to cut rates three times in 2019, with the benchmark rate now standing between 1.5% and 1.75%. As interest rates have fallen, borrowing costs for investors and commercial real estate developers have eased. Despite a large amount of capital ready to be deployed, however, it is becoming increasingly difficult to find suitable investment transactions in this saturated environment.
This year’s participating companies generated over $ 148 billion as direct lenders and over $ 131 billion as financial intermediaries in the 12 months ending September 2019, an increase of 12.2 %. during the previous year. CBRE and Cushman & Wakefield topped the list, down from third and eighth place respectively in 2019. Half of the top companies are licensed subsidiaries of GSE and most have issued loans in all asset classes, with the highest percentage of loan activity occurring in multi-family and office sectors.
As 2020 approaches, multi-family and office buildings will do well, especially in secondary markets or technology hubs where demographic shifts are fueling strong demand for these two sectors. However, even in tech hub markets with strong fundamentals, it remains difficult to find deals this late in the cycle. Investors will likely have to settle for lower returns than they had become accustomed to earlier in the business cycle.
The 2020 CPE-MHN The ranking of top mortgage companies used self-reported data for all companies. Ranking is a weighted formula based on a variety of factors, including total origination volume, coverage offered, transaction volume growth, and loan positioning, among others. The ranking represents what we believe to be a logical balance between company growth and market share, as well as the diversity or specialization of the industry. Ranking factors are not limited to the data on this page.