Washington, DC (July 31, 2012) – Commercial/multifamily mortgage origination volumes during the second quarter of 2012 were up 25% from second-quarter 2011 levels and up 39% from the first quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily mortgage lending and borrowing continued to pick up in the second quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Low interest rates and continued stabilization and growth in the commercial real estate markets are helping support new loan originations, and every major investor group increased their lending over the quarter.”
The 25% overall increase in commercial/multifamily lending volume, when compared with the second quarter of 2011, was driven by increases in originations for retail and hotel properties. The increase included a 56% increase in the dollar volume of loans for retail properties, a 22% increase for hotel properties, a 19% increase for multifamily properties, a 15% increase for office properties and an 11% increase in healthcare property loans. These gains offset a 5% decrease in industrial property loans.
Among investor types, the dollar volume of loans for commercial bank portfolios increased by 58% over last year’s second quarter. There was also a 50% increase in loan volumes for Government Sponsored Enterprises (or GSEs – Fannie Mae and Freddie Mac), a 16% increase in volumes for conduits for CMBS and a 10% increase in volumes for life insurance companies.
Second-quarter 2012 commercial and multifamily mortgage originations were 39% higher than originations in the first quarter of 2012. Compared with the first quarter, second-quarter originations for hotel properties saw a 147% increase. There was a 66% increase for office properties, a 47% increase for industrial properties, a 33% increase for healthcare properties, a 29% increase for retail properties and a 21% increase for multifamily properties.
Among investor types, between the first and second quarters of 2012, loans for conduits for CMBS saw an increase in loan volume of 302%, loans for life insurance companies saw an increase in loan volume of 37%, originations for GSEs increased 28% and loans for commercial bank portfolios increased by 9%.