(RECAP: Bank lenders are making a lot more permanent loans on apartment properties. These banks are lending to owners of stabilized apartment buildings even as they step away from funding new construction projects. New regulations and worries about overbuilding are driving many banks to make smaller construction loans, and to lend on fewer properties. Banks lenders originated more than a third—38 percent—of all permanent apartment loans in the first half of 2016. That’s not far behind the share of apartment loans made by agency lenders, including Fannie Mae and Freddie Mac, which have been the dominant source of lending on stabilized apartment properties since 2012. Agency lenders still originated more apartment loans than any other type of lender, but their lead is shrinking, with less than half—just 44 percent—of all permanent apartment loans in the first half of 2016.)

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