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Mortgage Bankers’ Commercial/Multifamily Originations Rise to Record $573.9 Billion in 2018

Mortgage Bankers’ Commercial/Multifamily Originations Rise to Record $573.9 Billion in 2018

WASHINGTON, D.C. (April 15, 2019) — (RealEstateRama) — Commercial and multifamily mortgage bankers closed a record $573.9 billion in loans in 2018, according to the Mortgage Bankers Association’s (MBA) 2018 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

MBA

Commercial bank portfolios were the leading capital source for whom loans were originated in 2018, responsible for $174.0 billion of the total. The government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac saw the second highest volume, at $142.3 billion, and were followed by commercial mortgage-backed securities (CMBS) issuers, life insurance companies and pension funds, and REITs, mortgage REITs and investment funds.

In terms of property types, multifamily properties saw the highest volume of mortgage bankers’ origination volume, at $266.4 billion, followed by office buildings, retail properties, industrial, hotel/motel and health care. First liens accounted for 96 percent of the total dollar volume closed.

“Borrowing and lending backed by commercial and multifamily properties hit another new record last year,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Solid fundamentals, growing property values, low interest rates and strong appetites from both borrowers and lenders all helped drive an 8 percent increase in recorded multifamily lending from a year ago. Repeat participants in our survey increased their lending by 4 percent during 2018, with the remaining growth coming from the addition of new firms.”

Added Woodwell, “Many capital sources rose to record levels of lending- including bank portfolios, life insurance companies, and the GSEs (Fannie Mae and Freddie Mac). Among property types, multifamily pulled even further ahead as the dominant lending target, growing to 46 percent of total mortgage banker lending – a series high.”

The reported dollar volume of commercial and multifamily mortgages closed last year was 8 percent higher than the volume reported in 2017. Among repeat participants in the survey, the dollar volume of closed loans increased by 4 percent.

For a copy of the report, visit MBA’s Online Store at: https://www.mba.org/news-research-and-resources/research-and-economics/commercial/multifamily-research/annual-origination-volume-summation. If you are a member of the media and would like a copy of the report, please contact Adam DeSanctis at adesanctis@mba.org.

CONTACT
Adam DeSanctis
adesanctis@mba.org
(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