Commercial and Multifamily Loan Originations Show Strength in First Quarter
While down from the fourth quarter of last year, first quarter originations were up 37 percent compared to the same period last year, according the Mortgage Bankers Association’s (MBA) quarterly survey of commercial/multifamily mortgage bankers originations.
While down from the fourth quarter of last year, first quarter originations were up 37 percent compared to the same period last year, according the Mortgage Bankers Association’s (MBA) quarterly survey of commercial/multifamily mortgage bankers originations.
The increase in commercial/multifamily lending activity during the first quarter was driven by increases in originations for all property types, says MBA.
When compared to the first quarter of 2006, the overall increase included a 64 percent increase in loans for health care properties, a 62 percent increase in loans for office properties, a 37 percent increase in loans for hotel properties, 26 percent increase in loans for multifamily, 25 percent increase in loans for retail properties, and a 14 percent increase in loans for industrial properties.
“Increases in total commercial/multifamily mortgage originations were led by increases in commercial mortgage-backed securities (CMBS) conduit loans and loans financing office properties,” says Jamie Woodwell, MBA's senior director of commercial/multifamily research. “The strong first quarter included heavy volume driven by real estate investment trusts (REIT) privatizations and continues a trend of first quarter-over-first quarter increases going back to the beginning of MBA's survey which was first released in 2001.”
Among investor types, conduits for CMBS, Government Sponsored Enterprises (or GSEs – Fannie Mae and Freddie Mac) and life insurance companies saw increases when compared to the same quarter last year, while originations for commercial banks decreased compared to the first quarter of 2006.
First quarter 2007 mortgage bankers' originations were 15 percent lower than originations in the fourth quarter of 2006, reflecting the industry's usual push to finalize deals before the end of the year, and the traditional and subsequent drop-offs in first quarter numbers. First quarter numbers show decreases in all property types except hotel.
Related Topics:
