Episode Details

Zions Bancorp Expands Multifamily Lending: Acquires Basis Multifamily Finances Agency Business

Zions Bancorp, a $89 billion asset regional bank, has announced its acquisition of Basis Multifamily Finances agency lending business. This strategic move grants Zions access to Fannie Mae and Freddie Mac loan programs for its commercial real estate clients, including key staff, lending approvals, and mortgage servicing rights. The deal is expected to bolster Zions capital markets unit, launched in 2020, by adding real estate financing options alongside investment banking and other services. Analysts view this as a savvy move to tap into Southern Californias vast multifamily market, where several lenders have exited through failures or buyouts. Despite many banks pulling back from multifamily lending due to higher rates in 2022 and 2023, Zions is forging ahead, leveraging agency programs that allow banks to share only one-third of the credit risk, with Fannie or Freddie covering the rest and guaranteeing loans. This deal could potentially attract more banks to the market, filling gaps left by recent industry shakeups and enhancing lending options across key markets.

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