MBA Says 1Q C/MF Borrowing Down from 4Q, Up from Year Ago
First quarter commercial/multifamily mortgage loan originations fell by one-third from the fourth quarter but edged up from a year ago, the Mortgage Bankers Association reported this morning.
The MBA Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations reported first quarter originations fell in line with market seasonal trends; MBA Vice President of Commercial Real Estate Research Jamie Woodwell said borrowing and lending backed by commercial real estate started 2018 at roughly the same pace from a year ago.
“Property types drawing the most attention of late continued to follow different paths, with retail originations declining while multifamily and industrial increased,” Woodwell said. “It was the strongest first quarter on record for originations of loans for life insurance companies and the GSEs, Fannie Mae and Freddie Mac.”
1Q Originations Up by 1.1% from Year Ago
A rise in originations for hotel, multifamily and industrial properties led the overall increase in commercial/multifamily lending volumes from a year ago. MBA reported a 54 percent year-over-year increase in the dollar volume of loans for hotel properties; an 18 percent increase for multifamily properties; a 14 percent increase for industrial properties; a 1 percent decrease for office properties, a 27 percent decrease in retail property loans; and a 39 percent decrease in health care property loans.
Among investor types, dollar volume of loans originated for commercial mortgage-backed securities increased by 12 percent year-over-year. Life insurance company loans increased by 9 percent; government-sponsored enterprises (Fannie Mae and Freddie Mac) increased by 8 percent; and loans originated for commercial bank portfolios loans decreased by 23 percent.
1Q Originations Down by 33% from 4Q
MBA said as is typical in comparisons of first quarter originations to fourth quarter originations, first quarter originations decreased by 33 percent from the fourth quarter. Among property types, hotel properties decreased by 53 percent. MBA reported a 41 percent decrease in originations for health care properties; a 37 percent decrease for retail properties; a 32 percent decrease for office properties; a 28 percent decrease for multifamily properties; and a 13 percent decrease for industrial properties.
Among investor types, dollar volume of loans for CMBS decreased by 47 percent; originations for GSEs decreased by 35 percent, loans for commercial bank portfolios decreased by 34 percent; and loans for life insurance companies decreased 18 percent.
To view the report, click https://www.mba.org/Documents/Research/1Q18CMFOriginationsSurvey.pdf.
