MBA Releases First Commercial/Multifamily Originations Data of 2016

Washington, D.C. April, 29 – (RealEstateRama) — First quarter 2016 commercial and multifamily mortgage loan originations overall were essentially flat compared to the same period last year and first quarter originations were thirty-eight percent lower than the fourth quarter of 2015 in line with the seasonality of market, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations

“In the aggregate, commercial real estate borrowing and lending started 2016 in a similarly strong fashion to 2015,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “Borrowing backed by retail, office, hotel and multifamily properties picked up, as did lending by banks. Disruptions in the broader capital markets pushed originations for commercial mortgage-backed securities (CMBS) down.  Across property types and investor types, changes in regulation and broader market conditions could have an impact on originations during the remainder of the year.”

FIRST QUARTER 2016 ORIGINATIONS RESULTS WERE MIXED COMPARED TO FIRST QUARTER 2015

A rise in originations for retail and office properties led the overall increase in commercial/multifamily lending volumes when compared to the first quarter of 2015.  The first quarter saw a 44 percent year-over-year increase in the dollar volume of loans for retail properties, an 18 percent increase for office properties, a 2 percent increase for multifamily properties, a 3 percent increase for hotel properties, a 56 percent decrease in industrial property loans, and a 57 percent decrease in health care property loans.

Among investor types, the dollar volume of loans originated for commercial bank portfolio loans increased by 44 percent year-over-year.  There was a 1 percent year-over-year decrease for life insurance company loans, a 19 percent decrease in the dollar volume of Commercial Mortgage Backed Securities (CMBS) loans, and a 22 percent decrease in Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) loans.

FIRST QUARTER 2016 ORIGINATIONS DOWN THIRTY-EIGHT PERCENT FROM FOURTH QUARTER 2015

In line with the seasonality of the market, first quarter 2016 originations for health care properties decreased 62 percent compared to the fourth quarter 2015.  There was a 57 percent decrease in originations for hotel properties, a 57 percent decrease for industrial properties, a 46 percent decrease for retail properties, a 39 percent decrease for multifamily properties, and a 23 percent decrease for office properties from the fourth quarter 2015.

Among investor types, between the fourth quarter 2015 and first quarter of 2016, the dollar volume of loans for GSEs decreased 45 percent, loans for commercial bank portfolios decreased 39 percent, originations for life insurance companies decreased 32 percent, and loans for CMBS decreased by 29 percent.

To view the report, please visit the following Web link:https://www.mba.org/Documents/Research/1Q16CMFOriginationsSurvey.pdf

CONTACT
Ali Ahmad

(202) 557- 2727

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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 2,400 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.

Contact:

Mortgage Bankers Association
1331 L Street, NW
Washington, DC 20005

Phone: (202) 557-2700

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