THE DISTRIBUTION OF MULTIFAMILY MORTGAGE ORIGINATIONS - WHAT WE KNOW AND WHY WE CARE

Three policy-relevant questions about multifamily mortgage origination s (MFOs) are addressed. First, what is the annual volume of MFOs? This analysis highlights differences and problems among three publicly ava ilable multifamily lending surveys: the 1993 volume is estimated at $3 0 billion. Second, what is the size distribution of multifamily mortga ges' Using kernel density estimation, variation in this distribution a mong central cities and suburbs, underserved areas, and lender type is examined. Third, what are the primary determinants of the variation i n multifamily lending? A relatively simple regression model is estimat ed to shed light on the variables most highly correlated with multifam ily lending. Tract income relative to MSA median income and minority c oncentrations are shown to be highly correlated with lending volume, b ut the largest source of variation is the number of multifamily rental units in the tract. (C) 1997 Academic Press.