MBA: Mortgage Bankers’ 2015 Commercial/Multifamily Originations Rise to Near-Record $504 Billion

Commercial and multifamily mortgage bankers closed $503.8 billion in loans during 2015, the Mortgage Bankers Association reported this morning in its 2015 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.   

“Commercial real estate borrowing and lending in 2015 came within a whisker of the record high level of 2007,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Volume was driven by improving property fundamentals, strong property values and very low interest rates. Despite some credit market disruptions to start off this year and regulatory and other hurdles still ahead, many of those positive factors remain in place.”  

Commercial bank portfolios led investor groups for whom loans originated in 2015, responsible for $138.6 billion. Commercial mortgage-backed securities issuers ranked second at $99.4 billion, 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 $503.8 billion in commercial and multifamily mortgages closed in 2015 was 26 percent higher than 2014. Among repeat participants in the survey, dollar volume of closed loans rose by 17 percent.  

For a copy of the report, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/commercial/multifamily-research/annual-origination-volume-summation.