Q1 2007 commercial/multi-family loan originations down from Q4 2006MortgagePress.comMBA, increases in commercial mortgage-backed securities, government-sponsored enterprises
Commercial and multi-family mortgage bankers' loan originations
were strong in the first quarter, according to the Mortgage Bankers Association's (MBA)
Quarterly Survey of Commercial/Multi-family Mortgage Bankers
Originations. While down from the fourth quarter of last year,
first quarter originations were up 37 percent compared to the same
period last year. The increase was seen across all property types
and most investor groups.
"Increases in total commercial/multi-family mortgage
originations were led by increases in commercial mortgage-backed
securities (CMBS) conduit loans and loans financing office
properties," said Jamie Woodwell, MBA's senior director of
commercial/multi-family research. "The strong first quarter
included heavy volume driven by real estate investment trusts
privatizations and continues a trend of first quarter-over-first
quarter increases going back to the beginning of MBA's survey which
was first released in 2001."
The increase in commercial/multi-family lending activity during
the first quarter was driven by increases in originations for all
property types. When compared to the first quarter of 2006, the
overall increase included a 64 percent increase in loans for
health-care properties, a 62 percent increase in loans for office
properties, a 37 percent increase in loans for hotel properties, 26
percent increase in multi-family loans, 25 percent increase in
loans for retail properties and a 14 percent increase in loans for
industrial properties.
Among investor types, conduits for CMBS, government-sponsored
enterprises (or GSEs--Fannie
Mae and Freddie Mac) and
life insurance companies saw increases when compared to the same
quarter last year, while originations for commercial banks
decreased compared to the first quarter of 2006.
First quarter 2007 mortgage bankers' originations were 15
percent lower than originations in the fourth quarter of 2006,
reflecting the industry's usual push to finalize deals before the
end of the year, and the traditional and subsequent drop-offs in
first quarter numbers. First quarter numbers show decreases in all
property types except hotel.
More detailed statistics on the commercial/multi-family
origination market are available from other periodic MBA
commercial/multi-family reports. These include:
-Commercial Real Estate/Multi-family Finance: Annual Origination
Volume Summation, 2006
-Commercial Real Estate/Multi-family Finance Firms: Annual
Origination Volumes, 2006
-MBA Annual Report on Multi-family Lending, 2006
-Commercial Real Estate/Multi-family Finance Quarterly Data
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For more information, visit www.mbaa.org.
