Commercial/multifamily originations volume hit record in 2007 despite mid-year slowdownMortgagePress.comMBA, housing market, 2007 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation,
The commercial/multifamily originations market grew 19 percent
in 2007, with mortgage bankers closing $507.7 billion in
commercial/multifamily loans according the Mortgage Bankers
Association's 2007 Commercial Real Estate/Multifamily Finance:
Annual Origination Volume Summation. Increases were seen across
most property types and most investor groups, and were led by
increases in loans for office buildings and loans intended for
commercial mortgage-backed security (CMBS), collateralized debt
obligations (CDO) and other asset-backed security (ABS) conduits.
Intermediated loan volume grew 15 percent between 2006 and
2007.
"Even with the credit crunch hitting mid-year, 2007 still set a
record for commercial/multifamily mortgage originations," said
Jamie Woodwell, MBA's senior director of commercial/multifamily
research. "The 2007 numbers show both the importance of the
commercial mortgage-backed securities (CMBS) market to commercial
real estate finance and the depth of other funding sources, such as
banks and thrifts, life companies, Fannie Mae, Freddie Mac and
others."
Conduits were the largest single investor group for these
mortgages - responsible for $225.2 billion, or 44 percent of the
closed loan volume. Office buildings were the dominant property
type - representing $140.7 billion, or 28 percent of the lending
total. Among major investor groups, Freddie Mac saw the greatest
percentage increase in volume between 2006 and 2007, followed by
Fannie Mae; CMBS, CDO and other ABS conduits; real estate
investment trusts (REITs); and life insurance companies.
Lending for office properties once again was the leader in
property type originations for 2007, followed closely by
multifamily. Lending for office properties grew by 36 percent
between 2006 and 2007. Lending for multifamily, health care, and
hotel/motel saw increases, while retail and industrial saw slight
declines over the year.
In a separate report, MBA's quarterly index of
commercial/multifamily mortgage bankers' originations showed that
through the first half of 2007, originations were running 38
percent ahead of 2006 levels. During the second half of 2007,
commercial/multifamily originations fell 11 percent from their 2006
levels.
For more information, visit www.mortgagebankers.org.
