New MBA Report Forecasts Strong Year for Commercial and Multifamily Lending

A new survey by the Mortgage Bankers Association (MBA) of the nation’s top commercial and multifamily mortgage origination firms is offering an optimistic forecast for lending in 2017.

Nearly two-thirds (63 percent) of the survey’s respondents predicted originations will increase this year, with one-quarter (26 percent) expecting an increase of five percent or more. Fifty percent of the respondents expected their firms to enjoy a five percent or higher increase in origination activity.

The survey also determined that 2016 was a healthy year for this side of the mortgage world: 96 percent of originators reported that had a “strong” or “very strong” appetite to make new loans last year and 77 percent expect lenders’ to have a “strong” or “very strong” this year. Furthermore, 80 percent of originators reported that in 2016 borrowers had a “strong” or “very strong” appetite to take out new loans and 69 percent expected borrowers’ appetite to remain “strong” or “very strong” in 2017. And 92 percent of originators reported that in 2016 their own firm had a “strong” or “very strong” appetite to make new loans—although 85 percent expected their own firm’s 2017 appetite to be “strong” or “very strong.”

 

"Commercial mortgage bankers expect 2017 to carry-over much of the momentum from 2016," said Jamie Woodwell, MBA's Vice President for Commercial Real Estate Research. "Most of the top firms expect strong demand from both lenders and borrowers in 2017, although not quite as strong as 2016. Originators generally see borrowing and lending volumes growing slightly, with just over half expecting potential regulatory and legislative changes to be positive for the market. The survey paints expectations of a strong, steady market in 2017.”