Commercial and multifamily mortgage loan originations nationwide were 107 percent higher in the second quarter than during the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
The rise was driven by increases in originations for all property types, according to a statement. When compared to the second quarter of 2010, the increase included a 141 percent increase in loans for healthcare properties, a 125 percent increase in loans for hotel properties, a 116 percent increase in loans for retail properties, a 114 percent increase in loans for multifamily properties, a 54 percent increase in office property loans and a 34 percent increase in industrial property loans.
Among investor types, loans for conduits for commercial mortgage-backed securities properties saw an increase of 638 percent compared to last year’s second quarter. There was also a 150 percent increase in loans for commercial bank portfolios, an 87 percent increase in loans for life insurance companies and a 58 percent increase in loans for government-sponsored enterprises.
"Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010," said Jamie Woodwell, MBA vice president of commercial real estate research. "Greater stability in property fundamentals and prices, and an improving sales market, are providing greater clarity for borrowers and lenders alike. Property values and interest rates – coupled with job growth, consumer spending, household growth and other macro-economic trends that drive demand for commercial real estate – will be keys to how property owners seek and qualify for mortgage financing going forward."
