Q3 Commercial/Multifamily Origination Volume Rises Nearly 30 Percent Annually

Q3 Commercial/Multifamily Origination Volume Rises Nearly 30 Percent Annually

October 25, 2013

Commercial and multifamily mortgage origination volumes during the third quarter of 2013 were 29 percent higher than during the third quarter of 2012 and originations were essentially flat compared to second quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Commercial and multifamily real estate borrowing and lending continued at a moderate clip in the third quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research.  “Mortgage origination volumes were essentially flat from the second quarter, but were up 29 percent from last year’s third quarter and are up 14 percent year-to-date.  Lending by life insurance companies remained near last quarter’s record pace, while lending for the GSEs dropped by more than a third.”
The 29 percent overall rise in commercial/multifamily lending volumes, when compared to the third quarter of 2012, was driven by the increase in originations for health care properties. The increase included a 124 percent boost in the dollar volume of loans for health care properties, a 69 percent increase for office properties, a 46 percent increase for hotel properties, a 30 percent increase for retail properties, an eight percent increase for industrial properties, and a three percent increase for multifamily properties when compared to the third quarter of 2012.
Among investor types, the dollar volume of loans originated for conduits for CMBS increased by 105 percent from last year’s third quarter. There was a 72 percent increase for life insurance companies, a 41 percent increase for commercial bank portfolio loans, and a 40 percent decrease in dollar volume of loans originated for Government Sponsored Enterprise (or GSE – Fannie Mae and Freddie Mac) loans.
Third quarter 2013 commercial and multifamily mortgage originations were essentially flat from the second quarter. Compared to the second quarter, third quarter 2013 originations for health care properties saw a 161 percent increase. There was a 25 percent increase for hotel properties, a 21 percent increase for office properties, a 16 percent increase for industrial properties, a 14 percent decrease for retail properties, and a 16 percent decrease for multifamily properties from second to third quarter 2013.
Among investor types, between the second and third quarters of 2013, loans for commercial bank portfolios saw an increase in dollar volume of 32 percent, loans for conduits for CMBS saw an increase in loan volume of eight percent, originations for life insurance companies decreased six percent and loans for GSEs decreased by 37 percent.
Year-to-date (through the third quarter) 2013 commercial and multifamily mortgage originations were 14 percent higher than originations during the same time period of 2012. Compared to 2012, year-to-date originations for hotel properties saw a 25 percent increase. There was a 20 percent increase for multifamily properties, a 20 percent increase for office properties, a 19 percent increase for health care properties, a four percent increase for industrial properties, and a seven percent decrease for retail properties.
Among investor types, year-to-date (through the third quarter) 2013 versus the same time period in 2012, loans for conduits for CMBS saw an increase in loan volume of 44 percent, loans for commercial bank portfolios saw an increase in loan volume of 22 percent, originations for life insurance companies increased 19 percent and loans for GSEs decreased three percent year-to-date 2013 versus year-to-date 2012.

Commercial, Originations, Trends

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