"The first quarter is traditionally when originators recover from the flood of year-end activity and build the foundation for the year ahead," noted Douglas G. Duncan, MBA chief economist and senior vice president of research and business development. "While it is unknown if the rate of growth seen in these markets during 2005 will continue at the same pace through 2006, first quarter numbers indicate no immediate signs of slowing."

FIRST QUARTER 2006 34 PERCENT HIGHER THAN FIRST QUARTER 2005

The increase in commercial/multifamily lending activity during the first quarter was across all property types. The increase over the first quarter of 2005 included a 26 percent increase in loans for office buildings, a 23 percent increase in loans for multifamily properties, a 55 percent increase in loans for retail, a 33 percent increase in loans for industrial space, and a 123 percent increase for health care properties. The largest percentage increase in lending was for hotel properties which saw a 165 percent increase from the first quarter of 2005.

Among investor types, commercial banks, life insurance companies and CMBS conduits drove much of the overall increase, although lending activity increased among almost all types. Mortgage bankers' originations for commercial mortgage-backed securities (CMBS) conduits increased 35 percent from the first quarter of 2005; originations for commercial banks increased by 64 percent; and originations for life insurance companies increased 2 percent. Originations for Fannie Mae and Freddie Mac increased 29 percent; originations for FHA increased 62 percent; and originations for pension funds dropped by 86 percent from the fourth quarter of 2005.

FIRST QUARTER 2006 37 PERCENT LOWER THAN FOURTH QUARTER 2005

First-quarter 2006 mortgage bankers' originations were 37 percent lower than originations in the fourth quarter of 2005, reflecting the industry's usual push to finalize deals before the end of the year, and the traditional and subsequent drop-offs in first quarter numbers. First quarter numbers show decreases in origination volumes across all property and investor types when compared to fourth quarter of 2005.

Detailed statistics on the commercial/multifamily origination market are available from MBA in the recently released Commercial Real Estate/Multifamily Finance:  Annual Origination Volume Summation for 2005. This report summarizes origination volumes across roles, investor types, property types and finance structure using totals from 125 leading lending institutions. It is available for sale through MBA's Online Store. 

Listings of individual firms and their 2005 origination volumes are also available from MBA and can be found also at MBA's Online Store.   

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country.  Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,400 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.