MBA: Mixed Picture On Q1 Commercial, Multifamily Originations

Posted by Orb Staff on May 15, 2012 No Comments
Categories : Commercial Mortgage

11552_0bcre MBA: Mixed Picture On Q1 Commercial, Multifamily Originations First-quarter commercial and multifamily mortgage loan originations increased by 36% from a year ago, but were 12% lower than the fourth quarter of last year, according to new data from the Mortgage Bankers Association (MBA).

According to the MBA, commercial/multifamily lending activity during the first quarter from a year ago was driven by a 118% increase in loans for healthcare properties, a 109% increase in loans for retail properties and a 45% increase in loans for multifamily properties. However, the quarter also saw a 7% decrease in loans for hotel properties, a 9% decrease in office property loans and a 32% decrease in industrial property loans.

Among investor types, loans for commercial bank portfolios increased 104% from a year ago. The MBA report also noted a 40% increase in loans for government-sponsored enterprises, a 10% increase in loans for life insurance companies and a 10% decrease in loans for conduits for commercial mortgage-backed securities.Â

‘Borrowing and lending on commercial and multifamily properties continues to rebound from the lows seen during the recession,’ says Jamie Woodwell, the MBA's vice president of commercial real estate research. ‘The low interest rates and stabilization in commercial real estate fundamentals that raised origination levels by 55 percent in 2011 are continuing to buoy activity in 2012.’

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