Commercial/multifamily mortgage originations down 80 percent from Q4 2007 in MBA Survey MortgagePress.comcommercial mortgages, MBA, survey, Q4, Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations
Commercial and multifamily mortgage loan originations dropped in
the fourth quarter, according to the Mortgage Bankers Association's
(MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers
Originations. Fourth quarter originations were 80 percent lower
than during the same period last year. The year-over-year decrease
was seen across all property types and investor groups.
"Commercial and multifamily mortgage lending slowed to a trickle
in the fourth quarter," said Jamie Woodwell, vice president of
commercial real estate research at the Mortgage Bankers
Association. "Origination levels in the fourth quarter were 80
percent below last year's fourth quarter, and originations for all
of 2008 were down approximately 60 percent from 2007 levels.
Between the worsening economy and the continued credit crunch,
lenders are extremely cautious about lending and borrowers are
likely to hold onto the assets and the loans they already
Decreases in total commercial/multifamily mortgage originations
continued to be led by a drop in commercial mortgage-backed
security (CMBS) conduit loans and loans for commercial bank
portfolios. These numbers show the impact of the recent credit
crunch and other market disruptions.
Q4 2008 totals 80 percent lower than Q4 2007
The decrease in commercial/multifamily lending activity during the
fourth quarter was driven by decreases in originations for all
property types. When compared to the fourth quarter of 2007, the
overall 80 percent decrease included a 99 percent decrease in loans
for hotel properties, an 82 percent decrease in loans for retail
properties, a 76 percent decrease in loans for industrial
properties, a 72 percent decrease in loans for office properties, a
62 percent decrease in multifamily property loans, and a 47
decrease in health care property loans.
Among investor types, conduits for CMBS saw a significant
decrease of 98 percent compared to last year's fourth quarter.
There was also an 86 percent decrease in loans for commercial bank
portfolios, a 73 percent decrease in loans for life insurance
companies, and the dollar volume of loans for Government Sponsored
Enterprises (or GSEs - Fannie Mae and Freddie Mac) saw a decrease
of 15 percent.
Q4 2008 numbers 11 percent lower than Q3
Fourth quarter 2008 mortgage originations were 53 percent lower
than originations in the third quarter of 2008.
Among investor types, loans for life insurance companies saw a
decrease in loan volume of 73 percent compared to the third quarter
of 2008, loans for conduits for CMBS saw a decrease in loan volume
of 60 percent compared to the third quarter of 2008, commercial
banks decreased by 43 percent during the same time span, and GSEs
volume decreased 21 percent from the third quarter 2008 to fourth
Compared to the third quarter of 2008, fourth quarter
originations for retail properties saw a 75 percent decrease. There
was a 68 percent decrease for industrial properties, a 66 percent
decrease for hotel properties, a 63 percent decrease for office
properties, a 35 percent decrease for health care properties, and a
33 percent decrease for multifamily properties.
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