| Title: | MBA Study Commercial and Multifamily Mortgage Originations Remained Low in Third Quarter 2009 |
| Source: | MBA |
| Date: | 11/5/2009 |
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WASHINGTON, D.C. (November 5, 2009) - Commercial and multifamily mortgage loan originations for the third quarter of 2009 were 12 percent lower than during the
second quarter of 2009, and 54 percent lower than during the same period last year, according to the Mortgage Bankers Association’s
(MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Tight credit conditions coupled with scant demand for new loans meant that commercial and multifamily mortgage originations
remained low in the third quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “A pull-back
by Fannie Mae and Freddie Mac in their multifamily activity outweighed increases in commercial/multifamily lending by life
insurance companies and commercial banks, leading the overall index lower on a quarter-over-quarter basis. Every investor
group and property type saw year-over-year declines in origination volume.”
THIRD QUARTER 2009 54 PERCENT LOWER THAN THIRD QUARTER 2008
The 54 percent overall decrease in commercial/multifamily lending activity during the third quarter was driven by year over
year decreases in originations for all property types. When compared to the third quarter of 2008, the decrease included
a 62 percent decrease in loans for retail properties, a 59 percent decrease in loans for health care properties, a 58 percent
decrease in loans for industrial properties, a 56 percent decrease in loans for office properties, a 46 percent decrease in
hotel property loans, and a 40 percent decrease in multifamily property loans.
Among investor types, loans for conduits for CMBS saw a decrease of 90 percent compared to last year’s third quarter. There
was also a 58 percent decrease in loans for life insurance companies, a 52 percent decrease in loans for commercial bank portfolios,
and the dollar volume of loans for Government Sponsored Enterprises (or GSEs – Fannie Mae and Freddie Mac) saw a decrease
of 31 percent.
THIRD QUARTER 2009 12 PERCENT LOWER THAN SECOND QUARTER 2009
Third quarter 2009 mortgage originations were 12 percent lower than originations in the second quarter. Among investor types,
loans for conduits for CMBS saw a decrease in loan volume of 50 percent compared to the second quarter, loans for GSEs’ saw
a decrease in loan volume of 24 percent compared to second quarter 2009, commercial bank portfolios increased by 27 percent
during the same time span, and originations for life insurance companies increased 17 percent from the second quarter to third
quarter 2009.
Compared to the second quarter of 2009, third quarter originations for office properties saw a 65 percent increase. There
was a 49 percent increase for industrial properties, a 32 percent decrease for hotel properties, an 18 percent decrease for
health care properties, a 17 percent decrease for multifamily properties, and a 14 percent decrease for retail properties.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.