Mortgage Bankers’ Commercial/Multifamily Originations Rise to $400 Billion in 2014

Mortgage Bankers’ Commercial/Multifamily Originations Rise to $400 Billion in 2014

WASHINGTON, D.C. – April 8, 2015 – (RealEstateRama) — Commercial and multifamily mortgage bankers closed $399.8 billion of loans in 2014, according to the Mortgage Bankers Association’s (MBA) 2014 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

“Last year was a strong year for commercial and multifamily mortgage borrowing and lending,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The year saw record origination volumes from life insurance companies and the GSEs, and the second highest level on record for banks. Only 2006 and 2007 recorded higher overall origination volumes. With property fundamentals and values continuing to improve, and interest rates still extraordinarily low, last year’s momentum has carried into the start of 2015.”

Commercial mortgage-backed securities (CMBS) issuers were the leading investor group for whom loans were originated in 2014, responsible for $106.3 billion of the total. Commercial banks saw the second highest volume, $102.5 billion, and were followed by: life insurance companies and pension funds; Fannie Mae; Freddie Mac; as well as REITS, mortgage REITS and investment funds.

In terms of property types, multifamily properties saw the highest origination volume, $150.3 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 97 percent of the total dollar volume closed.

The reported dollar volume of commercial and multifamily mortgages closed in 2014 was 12 percent higher than the volume reported in 2013. Among repeat participants in the survey, the dollar volume of closed loans rose by 6 percent.

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Apr 8, 2015
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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.

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

Phone: (202) 557-2700

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