COMMERCIAL BORROWING IN 2017 UP 21 PERCENT FROM 2016

The Mortgage Bankers Association released its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations for the third quarter of 2017, showing a 21 percent increase in commercial and multifamily mortgage loan originations compared to the same period last year, and an 8 percent increase over 2Q17.

As was the case during the first and second quarters, commercial/multifamily mortgage bankers’ originations increased despite a slowdown in the volume of sales transactions. Most property types and capital sources saw stronger lending activity than a year earlier, supported by solid property fundamentals and continued property value appreciation.

The Details:

  • A rise in originations for hotel and health care properties led the overall increase in commercial/multifamily lending volumes when compared to the third quarter of 2016.
  • The third quarter saw a 116 percent year-over-year increase in the dollar volume of loans for hotel properties, a 97 percent increase for health care properties, a 20 percent increase for industrial properties, a 15 percent increase for multifamily properties, an 8 percent increase in office property loans, and an 8 percent decrease in retail property loans.
  • Among investor types, the dollar volume of loans originated for Commercial Mortgage Backed Securities (CMBS) loans increased by 42 percent year-over-year.

MBA’s Quarterly Mortgage Bankers Originations provides updates on changes in the originations market, details changes in the volume of loans originated and breaks the data down by property type and investor type. It’s available for download, free of charge, at MBA’s web site.

For information on the overall size and composition of the market, please see the MBA’s Annual Origination Summation or CREF Database.

If you have questions regarding commercial/multifamily research from the MBA, or would like to participate in one of the MBAS’s surveys, please email it at crefresearch@mba.org.

GERSON LAW FIRM APC

GERSON LAW FIRM APC represents clients on all matters real estate and business related, both transactional and litigation. GERSON LAW FIRM APC is nationally recognized for its representation of some of the nation's largest lenders on loan closings, special servicing, and enforcement proceedings throughout the United States. GERSON LAW FIRM APC practice includes representing lenders closing loans under Fannie Mae's DUS Lending Program and Freddie Mac's Program Plus for multifamily investments. GERSON LAW FIRM APC represents major national banks, life insurance companies, and private funds in all matters lending related, including originations and loss mitigation strategies, for hotels, office buildings, shopping centers, multifamily and construction.