Mortgage Bankers’ 2018 Commercial/Multifamily Originations Rise to Record $573.9 Billion

Commercial and multifamily mortgage bankers closed a record $573.9 billion in loans in 2018, according to the Mortgage Bankers Association’s 2018 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation.

Commercial bank portfolios led capital sources for whom loans originated in 2018, at $174.0 billion. Government-sponsored enterprises Fannie Mae and Freddie Mac saw the second highest volume, at $142.3 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, at $266.4 billion, followed by office buildings, retail properties, industrial, hotel/motel and health care. First liens accounted for 96 percent of the total dollar volume closed.

“Solid fundamentals, growing property values, low interest rates and strong appetites from both borrowers and lenders all helped drive an 8 percent increase in recorded multifamily lending from a year ago,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Repeat participants in our survey increased their lending by 4 percent during 2018, with the remaining growth coming from the addition of new firms.”

The report said bank portfolios, life insurance companies and the GSEs rose to record levels of lending. Among property types, multifamily pulled even further ahead as the dominant lending target, growing to a series-high 46 percent of total mortgage banker lending.

MBA reported dollar volume of commercial and multifamily mortgages closed last year at 8 percent higher than 2017. Among repeat participants in the survey, dollar volume of closed loans increased by 4 percent.

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