Commercial and multifamily mortgage loan originations in the fourth quarter of 2009 were 12% higher than they were during the same period last year and 15% higher than during the third quarter of 2009, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
‘Commercial and multifamily mortgage originations picked up in the fourth quarter, but remain at a low level in absolute terms,’ says Jamie Woodwell, vice president of commercial real estate research at the MBA. ‘The trend shows stability coming back to the market, but the pick-up in volumes really indicates just how low origination levels had fallen.’
The 12% overall increase in commercial/multifamily lending activity was driven by increases in originations for all property types, except multifamily. When compared to the fourth quarter of 2008, the increase included a 105% increase in loans for hotel properties, a 101% increase in loans for retail properties, a 59% increase in loans for industrial properties, a 4% increase in loans for office properties, a 1% increase in healthcare property loans and an 8% decrease in multifamily property loans.
Among investor types, loans for life insurance companies saw an increase of 112% compared to last year's fourth quarter. There was also a 17% increase in loans for commercial bank portfolios, an 82% decrease in loans for conduits for commercial mortgage-backed securities (CMBS) and the dollar volume of loans for government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac saw a decrease of 26%.
Loans for commercial bank portfolios saw an increase in loan volume of 39% in the fourth quarter of 2009 compared to the third quarter of 2009, loans for life insurance companies saw an increase in loan volume of 35% compared to the third quarter 2009, conduits for CMBS decreased by 50% during the same time span and originations for GSEs decreased 15% from the third quarter to the fourth quarter of 2009.
Compared to the third quarter of 2009, fourth quarter originations for healthcare properties saw a 58% increase. There was a 34% increase for retail properties, a 30% increase for hotel properties, a 19% increase for industrial properties, a 4% increase for multifamily properties and a 12% decrease for office properties.
SOURCE: Mortgage Bankers Association