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MBA Report: Commercial/Multifamily Originations Up by 44% in 2010

Robinson, Matt
Commercial and multifamily mortgage origination volumes increased by 44 percent in 2010 from the previous year, with mortgage bankers reporting $118.8 billion in closed commercial and multifamily loans, the Mortgage Bankers Association reported.

The MBA 2010 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation said lending for office properties saw the largest percentage increase in originations by property type, followed closely by hotel/motel properties and retail.

“Coming off of the 2009 lows, commercial and multifamily originations increased by a strong 44 percent in 2010,” said MBA Vice President of Commercial Real Estate Research Jamie Woodwell. “Low interest rates coupled with improving economic fundamentals have the potential to draw out even more borrowers in 2011.”

Fannie Mae, Freddie Mac and FHA, collectively, represented the largest investor group in 2010, responsible for $42.8 billion, followed closely by life insurance companies and pension funds at $30.6 billion. By property types, multifamily properties saw the highest volume, $48.9 billion, followed by office properties with $22.6 billion in originations. First liens accounted for 92 percent of total closed dollar volume.

The report tracks year-over-year changes are based on the changes in volume among “repeat reporters” that participated in both the 2009 and 2010 surveys.

For a copy of the report visit MBA's Online Store at
http://store.mortgagebankers.org/ProductDetail.aspx?product_code=EC6-300025-RP-I.