Atlanta, GA – February 6, 2012 – (RealEstateRama) — Commercial/multifamily originations during the fourth quarter of 2011 were up 13 percent over the fourth quarter of 2010, but fell 7 percent from the third quarter of 2011, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“MBA’s Commercial/Multifamily Mortgage Bankers Origination Index hit record levels for life insurance companies in the second and third quarters of 2011,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “In the fourth quarter, multifamily originations for Fannie Mae and Freddie Mac hit a new all-time high. While the CMBS market continued to be held back by broader capital markets uncertainty during the past year, others – like the GSEs, life companies and many bank portfolios – increased their appetite for commercial and multifamily loans.”
FOURTH QUARTER 2011 ORIGINATIONS 13 PERCENT HIGHER THAN FOURTH QUARTER 2010
The 13 percent overall increase in commercial/multifamily lending activity over the fourth quarter of 2010 was driven by increases in originations for industrial and multifamily property types. The increase included a 43 percent increase in loans for industrial properties, a 31 percent increase in loans for multifamily properties, an 8 percent decrease in loans for retail properties, a 24 percent decrease in loans for health care properties, a 29 percent decrease in office property loans and a 44 percent decrease in hotel property loans.
Among investor types, loans for commercial bank portfolios increased by 122 percent compared to last year’s fourth quarter. There was also a 17 percent increase in loans for Government Sponsored Enterprises (or GSEs – Fannie Mae and Freddie Mac), a 13 percent decrease in loans for life insurance companies and a 50 percent decrease in loans for conduits for CMBS.
FOURTH QUARTER 2011 ORIGINATIONS 7 PERCENT LOWER THAN THIRD QUARTER 2011
Fourth quarter 2011 commercial and multifamily mortgage originations were 7 percent lower than originations in the third quarter of 2011. Compared to the third quarter, fourth quarter originations for hotel properties saw a 52 percent decrease. There was a 39 percent decrease for office properties, a 24 percent decrease for retail properties, a 29 percent increase for multifamily properties, a 51 percent increase for industrial properties, and a 153 percent increase for health care properties.
Among investor types, between the third and fourth quarters of 2011, loans for conduits for CMBS saw a decrease in loan volume of 26 percent, loans for life insurance companies saw a decrease in loan volume of 23 percent, originations for commercial bank portfolios decreased 16 percent and loans for GSEs increased by 34 percent.
MBA will release a more detailed analysis of 2011 commercial/multifamily origination activity, based on its annual origination survey, in April 2012.
To view the report, please click here.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.