Multifamily lending slipped by 1% year over year in 2022 but remained at a high level, according to the latest data from the Mortgage Bankers Association (MBA).

Last year saw $480.1 billion in new multifamily mortgages (for apartment buildings with five units or more) from 2,242 different lenders, per the MBA. The organization’s figures came from surveys of larger multifamily lenders, as well as recently released small lender data acquired via the Home Mortgage Disclosure Act.

“Multifamily borrowing remained strong in 2022, largely as a result of lending by banks,” said Jamie Woodwell, the MBA’s head of commercial real estate research. “Beginning in last year’s third quarter, rising and volatile interest rates, uncertainty about property values, and questions about some property fundamentals led to a fall-off in borrowing and lending across commercial property types, including multifamily.”

Large banks were the most prolific sources of multifamily funding last year, led by JP Morgan Chase. Wells Fargo, Walker & Dunlop, Berkadia and Capital One Financial Corp. rounded out the top five multifamily lenders.

Roughly a third of active lenders made five or fewer multifamily loans over the course of 2022. With ongoing turmoil in the banking sector and many banks adopting more stringent lending criteria, the MBA projects a step back in multifamily lending from large institutions this year.

“Most capital sources saw a significant decline in lending activity in 2022, but bank activity increased by an almost equal amount. It’s unlikely that this momentum is occurring this year, given current evidence that banks have tightened underwriting standards and borrower demand has weakened.”