WASHINGTON, D.C. – April 26, 2011 – (RealEstateRama) — Commercial and multifamily mortgage origination volumes increased 44 percent in 2010 over the previous year, with mortgage bankers reporting $118.8 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association’s 2010 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.
“Coming off of the 2009 lows, commercial and multifamily originations increased by a strong 44 percent in 2010,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Low interest rates coupled with improving economic fundamentals have the potential to draw out even more borrowers in 2011.”
Fannie Mae, Freddie Mac and FHA, collectively, were the largest investor group in 2010, responsible for $42.8 billion of the total, followed closely by life insurance companies and pension funds at $30.6 billion. In terms of property types, multifamily properties saw the highest volume, $48.9 billion, followed by office properties with $22.6 billion of originations. First liens accounted for 92 percent of the total dollar volume closed.
Lending for office properties had the largest percentage increase in originations by property type, followed closely by hotel/motel properties and retail. Year-over-year changes are based on the changes in volume among “repeat reporters” that participated in both the 2009 and 2010 surveys.
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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.