MBA: 1Q Commercial/Multifamily Borrowing Up 9% from Year Ago

The Mortgage Bankers Association reported first quarter commercial and multifamily mortgage loan originations increased by 9 percent from a year ago.

The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations also reported first quarter originations fell by 27 percent from the fourth quarter, in line with the seasonality of market.

woodwell“Commercial real estate borrowing and lending started 2017 on much the same footing it ended 2016,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Multifamily properties remain the key force behind overall originations trends, and the government-sponsored enterprises continue to drive multifamily originations. Matching broader investment themes, financing backed by industrial properties also picked up, while retail declined.”

1Q Originations Up 9% From Year Ago
MBA said a rise in originations for health care, industrial and multifamily properties led the overall increase in first quarter commercial/multifamily lending volumes compared to a year ago. The first quarter saw a 22 percent year-over-year increase in the dollar volume of loans for health care properties, a 40 percent increase for industrial properties, a 14 percent increase for multifamily properties, a 2 percent increase for office properties, a 23 percent decrease in retail property loans and a 40 percent decrease in hotel property loans.

Among investor types, dollar volume of loans originated for GSEs (Fannie Mae and Freddie Mac) increased by 33 percent year-over-year. Commercial bank portfolio loans increased by 11 percent, life insurance companies loans were essentially flat and loans originated for commercial mortgage-backed securities loans decreased by 17 percent.

1Q Originations Down 27% from 4Q
MBA said as is typical in comparisons of first quarter originations to fourth quarter originations, originations decreased by 27 percent. Among property types, hotel properties decreased by 58 percent, retail properties decreased by 48 percent, industrial properties decreased by 37 percent, multifamily properties decreased by 29 percent, office properties decreased by 26 percent, while health care properties decreased by 39 percent.

Among investor types, dollar volume of loans for CMBS decreased by 40 percent, originations for GSEs decreased by 29 percent, loans for commercial bank portfolios decreased by 19 percent and loans for life insurance companies decreased by by 28 percent.

The full report can be accessed at