MBA: Mortgage Bankers Close Record $530B in 2017 Commercial/Multifamily Originations

Commercial and multifamily mortgage bankers closed a record $530.1 billion of loans in 2017, according to the Mortgage Bankers Association’s 2017 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

“2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates and a ready supply of mortgage capital all contributing to extraordinarily attractive finance markets,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “We expect another robust year in 2018, even with the slight increase in interest rates, although perhaps not quite as robust as 2017.”

Commercial banks led investor groups for which loans originated in 2017, responsible for $151.2 billion. The government-sponsored enterprises (Fannie Mae and Freddie Mac) ranked second in volume, $130.0 billion, followed by commercial mortgage-backed securities issuers; life insurance companies and pension funds; and real estate investment trusts, mortgage REITS and investment funds.

By property type, multifamily properties saw the highest volume of mortgage bankers’ origination volume, $233.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. irst liens accounted for 96 percent of the total dollar volume closed.

The reported dollar volume of commercial and multifamily mortgages closed in 2017 was 8 percent higher than the volume reported in 2016. Among repeat participants in the survey, the dollar volume of closed loans increased by 7 percent.

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