3Q Commercial/multifamily mortgage originations up.

Author:Ahmad, Ali
Position:Commercial
 
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Commercial/multifamily mortgage loan originations came in 12 percent higher in the third quarter of 2015 from a year ago, and 3 percent higher from the second quarter, according to the Mortgage Bankers Association (MBA).

The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations reported that increases in originations for retail and office properties led the overall increase in commercial/ multifamily lending volumes. This included a 39 percent increase in dollar volume of loans for retail properties, a 17 percent increase for office properties, an 11 percent increase for multifamily properties, a 10 percent increase for industrial properties and a 9 percent decrease in hotel property loans. Health-care property loans decreased by 30 percent year-over-year.

"Every major investor group and property type except one has seen increases in year-to-date lending volumes, and we expect year-end numbers to continue that trend," said MBA Vice President of Commercial Real Estate Research Jamie Woodwell.

The MBA survey found among investor types, dollar volume of loans originated for commercial bank portfolio loans increased by 93 percent from a year ago. It reported an 18 percent increase for life insurance company loans, a 3 percent decrease for government-sponsored enterprise (GSE) (Fannie Mae and Freddie Mac) loans and an 8 percent decrease for commercial mortgage-backed securities (CMBS) loans. MBA said third-quarter originations for office properties increased by 37 percent compared with the second quarter, increased by 27 percent for retail properties and increased by 5 percent for health-care properties. The report noted a 1 percent decrease for industrial properties, an 8 percent decrease for multifamily properties and a 29 percent decrease for hotel properties.

Among investor types, dollar volume of loans for CMBS increased by 22 percent, loans for life insurance companies increased by 13 percent, originations for commercial bank portfolios increased by 9 percent and loans for GSEs decreased by 28 percent.

To view the report, visit www.mba.org/ documents/research/3ql5cmforiginations survey.pdf.--Ali Ahmad

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