MBA: Commercial/Multifamily Borrowing Up 8% from 2Q, 21% from Year Ago

Third quarter commercial and multifamily mortgage loan originations increased by 21 percent from a year ago and by 8 percent from the second quarter, the Mortgage Bankers Association reported this morning.

The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations said a rise in originations for hotel and health care properties led the overall increase in commercial/multifamily lending volumes.

“Borrowing and lending associated with commercial and multifamily real estate increased again in the third quarter, even as sales transaction volume slowed,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Most property types and capital sources saw stronger lending activity than a year earlier, supported by solid property fundamentals and continued property value appreciation.”

Hotel and health care properties led the overall increase in commercial/multifamily lending volumes from a year ago, with a 116 percent year-over-year increase in the dollar volume of loans for hotel properties, a 97 percent increase for health care properties, a 20 percent increase for industrial properties, a 15 percent increase for multifamily properties, an 8 percent increase in office property loans and an 8 percent decrease in retail property loans.

Among investor types, dollar volume of loans originated for commercial mortgage-backed securities loans increased by 42 percent year-over-year. MBA reported a 22 percent year-over-year increase for government-sponsored enterprises (Fannie Mae and Freddie Mac) loans, a 21 percent increase in commercial bank portfolio loans and a 2 percent decrease in the life insurance company loans.

MBA reported third quarter originations for health care properties increased by 120 percent from the second quarter; a 12 percent increase in originations for multifamily properties, a 10 percent increase for retail properties, a 6 percent increase for hotel properties, a 4 percent decrease for office properties and a 25 percent decrease for industrial properties.

Among investor types, dollar volume of loans for GSEs increased 31 percent in the third quarter from the second. Loans for commercial bank portfolios increased 15 percent, originations for CMBS increased 4 percent and loans for life insurance companies decreased by 4 percent.

To view the report, click here