Commercial and Multifamily Mortgage Originations Up Nine Percent

May 04, 2017

Originations of commercial and multifamily mortgages were up by nine percent on a year-over-year basis during the first quarter, according to new data from the Mortgage Bankers Association’s (MBA). However, the first quarter’s origination levels were 27 percent lower than the fourth quarter of 2016.

The year-over-year spike was fueled by the rise of originations in three sectors: a 40 percent year-over-year boost for industrial properties, a 22 percent upswing for health care properties and a 14 percent increase for multifamily properties; office properties saw a modest two percent uptick in originations. However, hotel property loans decreased by 40 percent while retail property loans declined by 23 percent.

Among investor types, the dollar volume of loans originated for the government-sponsored enterprises increased by 33 percent year-over-year while commercial bank portfolio loans increased 11 percent. But life insurance companies’ loans were flat year-over-year while loans originated for commercial mortgage-backed securities were down 17 percent.

“Commercial real estate borrowing and lending started 2017 on much the same footing it ended 2016,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Multifamily properties remain the key force behind overall originations trends, and the GSEs continue to drive multifamily originations. Matching broader investment themes, financing backed by industrial properties also picked up, while retail declined.”

About the author

Phil Hall

Link copied

Published

May 04, 2017

People On The Move

Ginnie Mae President Alanna McCargo Announces Resignation

McCargo was first woman and first woman of color at the helm of Ginnie Mae.

The U.S. Department of Housing and Urban Development (HUD) today announced that Alanna McCargo, president of the Government National Mortgage Association (Ginnie Mae), will resign, effective May 3, 2024. McCargo has served in the Biden-Harris Administration since January ...

People On The Move

Christensen, Andrus Added At CE Class Leader

Maximum Acceleration hires mortgage exec. as education director, adds banking manager

Brandon Christensen, a longtime mortgage broker and trainer, has been named Director of Education and National Instructor for Maximum Acceleration LLC, a leading NMLS-approved course provider for mortgage pre-license and continuing education. "Having Brandon join our amaz...