Commercial originations rise 98% in one year, MBA says
WASHINGTON, D.C. - Third-quarter 2011 commercial and multifamily mortgage loan originations were 98% higher than during the same period last year and 10% higher than the second quarter of 2011, according to the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
"Lending on commercial and multifamily properties continues," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Mortgage originations by life company portfolios hit another new record in the third quarter, and lending by bank portfolios and Fannie Mae and Freddie Mac also picked-up. Mortgage originations for the CMBS market, which was caught up in the global economic uncertainty of recent months, declined from last quarter, but were higher than last year's Q3 level."
The 98% overall increase in commercial/multifamily lending activity during the third quarter of 2011 was driven by increases in originations in most property types. When compared to the third quarter of 2010, the increase included a 406% increase in loans for hotel properties, a 164% increase in loans for retail properties, a 103% increase in loans for office properties, a 39% increase in loans for multifamily properties, a 3% decrease in industrial property loans and an 8% decrease in health care property loans.
Among investor types, loans for commercial bank portfolios increased by 433% compared to last year's third quarter. There was also a 169% increase in loans for conduits for CMBS, a 61% increase in loans for life insurance companies and a 47% increase in loans for Government Sponsored Enterprises (or GSEs - Fannie Mae and Freddie Mac).
Third-quarter 2011 commercial and multifamily mortgage originations were 10% higher than originations in the second quarter of 2011. Compared to the second quarter, third quarter originations for retail properties saw a 37% increase. There was an 8% increase for office properties, a 4% increase for hotel properties, a 2% decrease for multifamily properties, a 14% decrease for industrial properties and a 30% decrease for health care properties.
Among investor types, between the second and third quarters of 2011, loans for commercial bank portfolios saw an increase in loan volume of 55%, loans for GSEs saw an increase in loan volume of 32%, originations for life insurance companies increased 3% and loans for conduits for CMBS decreased by 48%.
To view the report, please visit the following web link: http://www.mortgagebankers.org/files/Research/CommercialOriginations/3Q11CMFOriginationSurvey.pdf.
