CMBS represent under 5 percent of multifamily loans and have highest risk, Jay Parsons notes

CMBS represent under 5 percent of multifamily loans and have highest risk, Jay Parsons notes
CMBS make up under 5 percent of multifamily loans

Jay Parsons stated that commercial mortgage-backed securities (CMBS) account for less than 5 percent of multifamily loans and are the highest risk loan category.

Parsons argued that context is important when discussing the risk profile of CMBS within the multifamily sector.

Parsons previously reported that Freddie Mac has paused new loans for New York City rent-stabilized apartments, while Fannie Mae is adjusting for rent freeze costs (see article). In an earlier update, he observed a slowdown in U.S. rental housing supply as demand remains strong (see article). These developments provide additional context to current discussions of multifamily loan risk.

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