MBA: Commercial/multifamily mortgage originations fall in Q2MortgagePress.comMBA, housing statistics, Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, CMBS
Commercial and multi-family mortgage loan originations continued
to fall on a year-over-year basis in the second quarter, according
to the Mortgage Bankers Association's (MBA) Quarterly Survey of
Commercial/Multifamily Mortgage Bankers Originations. Second
quarter originations were sixty-three percent lower than during the
same period last year. The year-over-year decrease was seen across
most property types and investor groups.
"Commercial/multifamily mortgage originations remained low in
second quarter," said Jamie Woodwell, MBA's vice president of
Commercial/Multifamily Real Estate Research. "Fannie Mae and
Freddie Mac set a new record high; banks, thrifts and life
companies are back down from their 2006 and 2007 record paces; and
originations for the commercial mortgage backed securities (CMBS)
market hit a new record low. The slowdown in originations has come
from both a decrease in the supply of capital available and a
decrease in the demand for new mortgages. It is likely volumes will
remain muted until buyers, sellers, borrowers, lenders and their
expectations of rates and terms match closely enough for
transaction activity to pick back up."
Decreases in total commercial/multifamily mortgage originations
were led by a drop in commercial mortgage-backed security (CMBS)
conduit loans. These numbers show the impact of the recent credit
crunch and other market disruptions.
The decrease in commercial/multifamily lending activity during
the second quarter was driven by decreases in originations for most
property types. When compared to the second quarter of 2007, the
overall 63 percent decrease included an 87 percent decrease in
loans for hotel properties, a 65 percent decrease in loans for
office properties, a 63 percent decrease in loans for retail
properties, a 57 percent decrease in loans for industrial
properties, a 42 percent decrease in multifamily property loans,
and a 66 percent increase in health care loans.
Among investor types, conduits for CMBS saw a significant
decrease of 98 percent compared to last year's second quarter.
There was also a 29 percent decrease in loans for commercial bank
portfolios, and a 27 percent decrease in loans for life insurance
companies. The dollar volume of loans for Government Sponsored
Enterprises (or GSEs - Fannie Mae and Freddie Mac) saw an increase
of 66 percent. The level of originations for the GSEs was the
highest recorded for a March through June period; while the CMBS
market saw the lowest level since the MBA survey began in 2001.
Second quarter 2008 mortgage originations were 2 percent lower
than originations in the first quarter of 2008.
Among investor types, conduits for CMBS saw a decrease in loan
volume of 53 percent compared to the first quarter of 2008, loans
for commercial bank portfolios saw an increase in loan volume of 27
percent compared to the first quarter of 2008, life insurance
companies increased by 8 percent during the same time span, and
GSEs volume was essentially unchanged from the first quarter 2008
to second quarter 2008.
Compared to the first quarter of 2008, second quarter
originations for industrial properties saw a 23 percent decrease.
There was a 14 percent decrease for multifamily properties, a 7
percent decrease for retail properties, a 90 percent increase for
health care properties, a 33 percent increase for office
properties, and a 21 percent increase for hotel properties.
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