Mortgage Bankers’ Commercial/Multifamily Originations Rise to Near-Record $504 Billion in 2015

WASHINGTON, D.C. – April 8, 2016 – (RealEstateRama) — Commercial and multifamily mortgage bankers closed $503.8 billion of loans in 2015 according to the Mortgage Bankers Association’s (MBA) 2015 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

“Commercial real estate borrowing and lending in 2015 came within a whisker of the record high level of 2007,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “The volume was driven by improving property fundamentals, strong property values and very low interest rates.  Despite some credit market disruptions to start off this year and regulatory and other hurdles still ahead, many of those positive factors remain in place.”

Commercial bank portfolios were the leading capital source in 2015, responsible for $138.6 billion of the total.  Commercial mortgage-backed securities (CMBS) saw the second highest volume, $99.4 billion, and were followed by life insurance companies and pension funds; Freddie Mac; Fannie Mae; and REITS, mortgage REITS and investment funds.

In terms of property types, multifamily properties saw the highest origination volume, $201.7 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 2015 was 26 percent higher than the volume reported in 2014.  Among repeat participants in the survey, the dollar volume of closed loans rose by 17 percent.

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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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