Commercial and Multifamily Origination Volume Takes Q3 Drop

Nov 19, 2018

Origination volume for commercial and multifamily properties took a drop in the third quarter, according to new data from the Mortgage Bankers Association (MBA).

Commercial and multifamily originations were down by three percent from the second to the third quarter and down by seven percent from the third quarter of 2017. Health care properties saw the greatest level of decline with a 55 percent annualized plummet, followed by retail properties with a 28 percent decline, hotel properties with a 19 percent drop and office properties with a 17 percent decrease. The only property sectors that saw upswings in originations last quarter were multifamily and industrial properties, each by 19 percent.

Among investor types, the dollar volume of loans originated during the third quarter for commercial mortgage-backed securities (CMBS) loans and commercial bank portfolio loans were down from the third quarter of 2017 by 53 percent and 22 percent, respectively. Loan originations were up four percent for life insurance companies and up three percent for Fannie Mae and Freddie Mac.

Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, commented, “Rising interest rates took some wind out of the market’s sails, with the 10-year Treasury yield starting the quarter at 2.87 percent and finishing at 3.05 percent, and the two-year Treasury starting at 2.57 percent and ending at 2.81 percent. The CMBS and bank lending markets were the hardest hit. Meanwhile, lending backed by multifamily properties and for the government sponsored enterprises continued to grow.”

About the author

Phil Hall

Link copied

Published

Nov 19, 2018

C-Suite Strategies

New CEO, COO For American Financial Resources

AFR promotes Robert Pieklo to chief executive officer and Michael Brenning to chief operating officer

National mortgage lender American Financial Resources (AFR) announced yesterday it has promoted Robert Pieklo to CEO and Michael Brenning to COO, effective immediately. Pieklo, who was appointed COO following AFR's acquisition in February 2024, has been “instrumental” in ...

Courts

Ohio Sues United Wholesale Mortgage Over Broker "Scheme"

Lawsuit alleges lender steered borrowers into higher-cost loans through deceptive broker relationships

Ohio Attorney General Dave Yost has filed a lawsuit against United Wholesale Mortgage (UWM), alleging the Michigan-based lender misled borrowers by misrepresenting the independence of mortgage brokers. The complaint, filed in Montgomery County Common Pleas Court, claims U...