MBA: 2017 Commercial/Multifamily Borrowing Up 15%
SAN DIEGO–Commercial and multifamily mortgage originations rose by 15 percent for the full-year 2017 over 2016, according to preliminary estimates from the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
MBA said data for the fourth quarter show a 9 percent increase in originations over the third quarter and a 10 percent increase compared to a year ago.
“Based on these preliminary numbers, 2017 was a record year for borrowing and lending backed by commercial real estate properties,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “The increase was driven by multifamily lending, particularly for Fannie Mae and Freddie Mac, coupled with overall growth in originations for commercial mortgage-backed securities and other capital sources.”
Entering 2018, Woodwell said “there continues to be strong interest to lend by just about every major capital source.”
4Q Originations Up 10% from Year Ago
Increases in originations for hotel, multifamily and office properties led the overall increase in commercial/multifamily lending volumes when compared to a year ago. The fourth quarter saw a 40 percent year-over-year increase in dollar volume of loans for hotel properties, a 16 percent increase for multifamily properties, a 7 percent increase for office properties, a 17 percent decrease for industrial properties, a 36 percent decrease in health care property loans,and a 40 percent decrease in retail property loans.
Among investor types, dollar volume of loans originated for Commercial Mortgage-Backed Securities increased by 27 percent year-over-year. MBA reported a 17 percent year-over-year increase for Government-Sponsored Enterprises (Fannie Mae and Freddie Mac) loans, a 4 percent decrease in life insurance company loans and a 5 percent decrease in the dollar volume of commercial bank portfolio loans.
4Q Originations Up 9% from 3Q
Fourth quarter originations for hotel properties increased by 31 percent compared to the third quarter. MBA reported a 25 percent increase in originations for industrial properties, a 17 percent increase for multifamily properties, a 9 percent increase for office properties, a 21 percent decrease for retail properties and a 28 percent decrease for health care properties.
Among investor types, dollar volume of loans for life insurance companies increased by 11 percent, loans for commercial bank portfolios increased 8 percent, originations for GSEs increased 4 percent and loans for CMBS decreased by 6 percent.
Preliminary 2017 Originations 15% Higher than 2016
A preliminary measure of commercial and multifamily mortgage origination volumes shows 2017 originations 15 percent higher than 2016. Originations for hotel properties increased by 26 percent. MBA reported a 22 percent increase for industrial properties, a 17 percent increase for multifamily properties, a 12 percent increase for office properties, a 9 percent increase for health care properties and a 21 percent decrease for retail properties.
Among investor types, 2017 versus 2016, loans for CMBS increased by 43 percent, originations for GSEs increased by 23 percent, loans for commercial bank portfolios decreased by 1 percent and loans for life insurance companies decreased 2 percent.
In late March, MBA will release its Annual Origination Summation report for 2017 with final origination figures for the year.
To view the report, visit: https://www.mba.org/Documents/Research/4Q17CMFOriginationsSurvey.pdf.
