MBA: Quarterly Commercial and Multifamily Originations Up 35%

Commercial and multifamily mortgage loans substantially increased in Q210 compared to Q110, up 35%; however, this is only a 1% increase from Q209, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Almost all sections for loan origination increased between Q110 and Q210 including loans for conduits for commercial mortgage-backed securities (CMBS), up 106%, loans for life insurance companies (up 57%), originations for GSEs (up 21%), originations for hotel properties (up 405%), originations for industrial properties (up 114%), loans for healthcare properties (up107%), loans for office properties (up 56%) and originations for multifamily properties (38%). Q210 loans for commercial bank portfolios saw a 2% decrease while retail property loan originations decreased by 11%. MBA stated that the 1% overall increase year-to-year for the second quarter was driven almost solely by increases in originations for office and industrial properties which increased 180% and 183% respectively from Q209. Even though originations in hotel properties went up 18%, loans for life insurance went up 148% and loans for conduits for CMBS increased by 183% between Q209 and Q210, the offset occurred in all other areas of originations. Healthcare property loans decreased 76%, multifamily property loans diminished 25%, retail property loans decreased 9%, commercial bank loans decreased 12% and the dollar volume of loans for GSEs depleted 55%. MBA said that on an absolute level, the current volume of loan origination remains low. Write to Christine Ricciardi.

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