MBA Chart of the Week: Commercial/Multifamily Mortgage Originations by Capital Source

In 2015, commercial and multifamily real estate borrowing and lending came within a whisker of the record-high level of 2007.   

Mortgage bankers closed $504 billion in loans in 2015, compared to $508 billion closed in 2007. Looking just at multifamily loans, mortgage bankers closed a record $202 billion in 2015.  

Commercial bank portfolios were the leading capital source in 2015, responsible for $138.6 billion of the total.  Commercial mortgage-backed securities saw the second highest volume, $99.4 billion, and were followed by life insurance companies and pension funds; Freddie Mac; Fannie Mae; and real estate investment trusts, mortgage REITS and investment funds.  

By property type, multifamily properties saw the highest origination volume, $201.7 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 97 percent of the total dollar volume closed.  

The reported dollar volume of commercial and multifamily mortgages closed in 2015 was 26 percent higher from 2014. Among repeat participants in the survey, dollar volume of closed loans rose by 17 percent.  

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Jamie Woodwell is vice president of commercial/multifamily research and economics with the Mortgage Bankers Association. He can be reached at jwoodwell@mba.org.)