MBA: Commercial/Multifamily Origination Volume Basically Flat, YOY

Posted by Patrick Barnard on August 01, 2014 No Comments
Categories : Commercial Mortgage

Origination volume for commercial and multifamily mortgage loans increased 34% in the second quarter compared to the first quarter, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

However, volume was down about 2% compared to the second quarter of 2013 – meaning growth has been more or less flat.

Typically, volume of commercial/multifamily loans ramps up in the spring – which is what happened this year, after a particularly harsh winter.

‘Year-to-date borrowing by commercial and multifamily real estate owners is running at the same pace as last year,’ says Jamie Woodwell, vice president of commercial real estate research for the MBA, in a release. ‘Low interest rates and improving property fundamentals are prompting borrowers to act, but the relatively low volume of loans hitting maturity is checking overall demand.’

The 2% year over year decrease was driven mainly by a decrease in originations for retail and multifamily properties. The volume of loans for retail properties fell 10%, year over year, while loans for multifamily properties fell about 6%.

Helping to offset these declines was a 20% increase in mortgages for office properties, a 20% increase in loans for industrial properties, a 45% increase in loans for hotel properties, and a 95% increase in loans for healthcare properties.

Among investor types, the dollar volume of loans originated for government-sponsored enterprises Fannie Mae and Freddie Mac decreased by 13%, compared to the second quarter of 2013.

In addition, there was a 13% decrease for life insurance company loans, a 19% increase for commercial bank portfolio loans and a 45% increase in dollar volume for CMBS loans.

To view the full report, click here.

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