Washington, D.C. – April 11, 2012 – (RealEstateRama) — Commercial and multifamily mortgage origination volumes increased 55 percent in 2011, with mortgage bankers reporting $184.3 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s (MBA) 2011 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.
Fannie Mae, Freddie Mac and FHA were collectively the leading investor group for whom loans were originated in 2011, responsible for $57.6 billion of the total. Life insurance companies and pension funds saw the second highest volume, $49.3 billion.
In terms of property types, multifamily properties saw the highest origination volume, $77.4 billion, followed by office properties with $34.4 billion of originations. First liens accounted for 93 percent of the total dollar volume closed.
Lending for retail properties saw the largest percentage increase among the major property types, followed closely by multifamily and industrial properties.
Origination volumes for Fannie Mae, Freddie Mac and FHA each hit new records in 2011. Despite their record volumes, faster growth in multifamily lending by other investors led the GSEs’ market share to decline in 2011. Loans originated for Fannie Mae and Freddie Mac accounted for 57 percent of multifamily volume in 2011, down from 63 percent in 2010 and 85 percent in 2009.
“Commercial mortgage lending continues to rebound from its 2009 lows,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Originations for life companies, Fannie Mae, Freddie Mac and FHA were all strong, and banks, commercial mortgage-backed securities (CMBS) issuers and others also saw strong growth. With interest rates still low and stability returning to real estate fundamentals, the rebound is expected to continue in 2012.”
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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 2,200 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.