Commercial and multifamily mortgage origination volume during the second quarter of 2013 were seven percent higher than during the second quarter of 2012 and 36 percent higher than during the first quarter of 2013, 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 grow during the second quarter,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “The apartment market continues to be the belle of the ball, with multifamily mortgage originations running 31 percent ahead of last year’s first half total. And after a slow start to the year, lending by life insurance companies surged in the second quarter to record the highest quarterly volume on record for that sector.”
The seven percent overall increase in commercial/multifamily lending volume, when compared to the second quarter of 2012, was driven by the increase in originations for multifamily properties. The increase included a 31 percent increase in the dollar volume of loans for multifamily properties, a three percent increase for hotel properties, a 14 percent decrease for retail properties, a 36 percent decrease for health care properties, and office and industrial properties remained unchanged when compared to the second quarter of 2012.
Among investor types, the dollar volume of loans originated for life insurance companies increased by 16 percent from last year’s second quarter. There was a 13 percent increase for commercial bank portfolio loans, an eight percent increase for Government Sponsored Enterprise (or GSE – Fannie Mae and Freddie Mac) loans, and a 14 percent decrease in dollar volume of loans originated for conduits for CMBS.
Second quarter 2013 commercial and multifamily mortgage originations were 36 percent higher than originations in the first quarter. Compared to the first quarter, second quarter 2013 originations for hotel properties saw an 89 percent increase. There was a 75 percent increase for office properties, a 48 percent increase for retail properties, a 44 percent increase for industrial properties, a 22 percent increase for multifamily properties, and health care properties were unchanged from first to second quarter 2013.
Among investor types, between the first and second quarters of 2013, loans for life insurance companies saw an increase in dollar volume of 100 percent, loans for conduits for CMBS saw an increase in loan volume of 27 percent, originations for commercial bank portfolios increased 14 percent and loans for GSEs increased by two percent.
Year-to-date (through the second quarter) 2013 commercial and multifamily mortgage originations were eight percent higher than originations during the same time period of 2012. Compared to 2012, year-to-date originations for multifamily properties saw a 31 percent increase. There was a 13 percent increase for hotel properties, a one percent increase for industrial properties, a two percent decrease for office properties, a 19 percent decrease for retail properties and a 27 percent decrease for health care properties.
Among investor types, year-to-date (through the second quarter) 2013 versus the same time period in 2012, loans for conduits for CMBS saw an increase in loan volume of 22 percent, loans for GSEs saw an increase in loan volume of 20 percent, originations for commercial bank portfolios increased 11 percent and loans for life insurance companies were even year-to-date 2013 versus year-to-date 2012.