Commercial/Multifamily Originations Drop Sharply

Commercial and multifamily mortgage loan originations continued to fall on a year-over-year basis in the second quarter, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Second quarter originations were 63% lower than during the same period last year. Conduits for commercial mortgage-backed securities (CMBS) registered a 98% drop compared with the same period last year.

Article Tools

Latest News

More Latest News

Issue Archive

Issue Archive

“The slowdown in originations has come from both a decrease in the supply of capital available and a decrease in the demand for new mortgages,” says Jamie Woodwell, MBA's vice president of commercial/multifamily real estate research. “It is likely volumes will remain muted until buyers, sellers, borrowers, lenders and their expectations of rates and terms match closely enough for transaction activity to pick back up."

The drop in lending activity is evident across all property types. Loans for hotel properties dropped 87% in the second quarter compared with the same period last year. Loans for office properties dropped 65%, retail declined 63%, industrial fell 57% and multifamily property loans fell 42%. Health care loans also experienced a 66% decline.

Among investor types, conduits for CMBS saw the largest decline hitting the lowest level since the MBA bean the survey in 2001. There was also a 29% drop in commercial bank portfolio loans and a 27% decline in loans for life insurance companies. Meanwhile, Government Sponsored Enterprises — Fannie Mae and Freddie Mac — saw an increase of 66%, the highest recorded for a March through June period.


Acceptable Use Policy
blog comments powered by Disqus

Nrei Interactive Products

  • Green Shoots

    Commercial Real Estate's Green Building Blog

    Get latest news, data and analysis of the rapidly evolving commercial real estate green building industry. Gain insight on green leases, valuations, financing, and government regulations and incentives for new and existing buildings.

    Green Shoots Blog

  • The Alter Group

    Larry Armstrong on Architecture in a Recession

    Larry Armstrong, President, Ware Malcomb, an international architecture firm, says that in times of recession, survival is dependant on having a strong strategic plan in place and creating functional work vs. extravagent projects to meet clients' needs...

  • The Alter Group

    Charles Krawitz on the Credit Crisis

    Charles Krawitz, Senior Loan Sales Asset Manager of Fifth Third Bank, discusses the current state of the small to medium sized loan and the general capital markets. Topics include tapping Freddie and Fannie loans, and the government expanding their credit facility via the SBA.

    Full text article for this podcast

  • White Paper

    2009 Real Estate Investment Outlook

    National Real Estate Investor and Marcus Millichap
    2009 Real Estate Investment Outlook...

  • On-Demand Webinar

    Reinventing Space

    This Webcast looks at tips for how empty space can be used in a way that generates foot traffic and cash flow. We explore strategies and incorporate real-life examples of what some creative owners and retailers have done to weather the weak retail environment and keep dark space from harming healthy retailers that are operating.

Marketplace Ads