The goodfor mortgage bankers is flowing as fast as the capital these days.The good news for mortgage bankers is flowing as fast as the capital these days. Commercial/multifamily mortgage originations rose 3% in the fourth quarter of 2006 over the same period a year earlier, and total annual volume is expected to surpass the previous record of $201 billion set in 2005, according to the Mortgage Bankers Association.
The combination of an abundance of capital, improving property markets and innovative financing vehicles such as commercial-debt obligations (CDOs) are boosting lending volume to unprecedented heights, says Jamie Woodwell, MBA's senior director of commercial and multifamily research.
“There are a number of fronts parked over the commercial/multifamily world that are leading us to some pretty calm seas,” says Woodwell. The researcher's remarks came during a media luncheon at the Marriottin downtown San Diego on Monday as part of MBA's annual commercial/multifamily convention. The event has drawn about 5,000 attendees.