MBA: Second Quarter Commercial/Multifamily Borrowing Bounces Back

Commercial and multifamily mortgage loan originations jumped by 106 percent in the second quarter from a year ago and increased by 66 percent from the first quarter, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Borrowing and lending tied to commercial and multifamily properties  rebounded in the second quarter,” said Jamie Woodwell, MBA Vice President of Commercial Real Estate Research.  “Mortgage originations doubled compared to the second quarter of 2020, when loan demand cratered, and pandemic-related uncertainty made extending credit difficult. Even more notable is that compared to levels seen in 2019, a record year for originations, this year’s second quarter showed a modest 1 percent increase.” 

Woodwell said significant differences remain between property types, noting originations of loans backed by industrial and multifamily properties hit second-quarter records, while retail and lodging loan volume remained muted.

Originations Up 106% in Second Quarter

All property types showed an increase in the second quarter in commercial/multifamily lending volumes from a year ago. The second quarter saw a 327 percent year-over-year increase in dollar volume of loans for industrial properties, a 302 percent increase for health care properties, a 234 percent increase for hotel properties, a 149 percent increase for office properties, an 88 percent increase for retail properties and a 63 percent increase for multifamily property loan originations.

Among investor types, dollar volume of loans originated for commercial mortgage-backed securities increased by 1,913 percent year-over-year. MBA also reported a 144 percent increase for life insurance company loans, a 72 percent increase for commercial bank portfolio loans and a 33 percent decrease in the dollar volume of government-sponsored enterprise (Fannie Mae and Freddie Mac) loans.

2Q Originations Up 66% from 1Q


Second quarter originations for hotel properties increased 228 percent from the first quarter. MBA also reported a 219 percent increase in originations for health care properties, a 76 percent increase for industrial properties, a 65 percent increase for office properties, a 62 percent increase for retail properties and a 49 percent increase for multifamily properties.

Among investor types, dollar volume of loans for commercial banks portfolios increased 107 percent between the first and second quarters. Loans for life insurance companies increased by 94 percent and originations for CMBS increased by 76 percent. Only dollar volume of loans for GSEs decreased last quarter, by 8 percent.

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