| Title: | Commercial/Multifamily Originations Volume Hit Record in 2007 Despite Mid-year Slowdown |
| Source: | MBA |
| Date: | 5/6/2008 |
Contacts:
|
Washington, DC (May 6, 2008) – The commercial/multifamily originations market grew 19 percent in 2007, with mortgage bankers closing $507.7 billion in
commercial/multifamily loans according the Mortgage Bankers Association’s 2007 Commercial Real Estate/Multifamily Finance:
Annual Origination Volume Summation. Increases were seen across most property types and most investor groups, and were led
by increases in loans for office buildings and loans intended for commercial mortgage-backed security (CMBS), collateralized
debt obligations (CDO) and other asset-backed security (ABS) conduits. Intermediated loan volume grew 15 percent between 2006
and 2007
”Even with the credit crunch hitting mid-year, 2007 still set a record for commercial/multifamily mortgage originations,”
said Jamie Woodwell, MBA’s Senior Director of Commercial/Multifamily Research. “The 2007 numbers show both the importance
of the commercial mortgage-backed securities (CMBS) market to commercial real estate finance and the depth of other funding
sources, such as banks and thrifts, life companies, Fannie Mae, Freddie Mac and others.”
Conduits were the largest single investor group for these mortgages - responsible for $225.2 billion, or 44 percent of the
closed loan volume. Office buildings were the dominant property type - representing $140.7 billion, or 28 percent of the lending
total.
Among major investor groups, Freddie Mac saw the greatest percentage increase in volume between 2006 and 2007, followed by
Fannie Mae; CMBS, CDO and other ABS conduits; real estate investment trusts (REITs); and life insurance companies.
Lending for office properties once again was the leader in property type originations for 2007, followed closely by multifamily.
Lending for office properties grew by 36 percent between 2006 and 2007. Lending for multifamily, health care, and hotel/motel
saw increases, while retail and industrial saw slight declines over the year.
In a separate report, MBA’s quarterly index of commercial/multifamily mortgage bankers’ originations showed that through the
first half of 2007, originations were running 38 percent ahead of 2006 levels. During the second half of 2007, commercial/multifamily
originations fell 11 percent from their 2006 levels.
To learn more about the report or to obtain a copy, click here.
###
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.