Press Release - Originations


Title: Q2 Commercial/Multifamily Originations Up 7 Percent from Last Year; 36 Percent from Q1
Source:   MBA
Date: 7/30/2013

Washington, DC (July 30, 2013) – Commercial and multifamily mortgage origination volumes during the second quarter of 2013 were seven percent higher than during the second quarter of 2012 and 36 percent higher than during the first quarter of 2013, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Commercial and multifamily mortgage lending and borrowing continued to grow during the second quarter,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  “The apartment market continues to be the belle of the ball, with multifamily mortgage originations running 31 percent ahead of last year’s first half total.  And after a slow start to the year, lending by life insurance companies surged in the second quarter to record the highest quarterly volume on record for that sector.”

SECOND QUARTER 2013 ORIGINATIONS SEVEN PERCENT HIGHER THAN SECOND QUARTER 2012

The seven percent overall increase in commercial/multifamily lending volume, when compared to the second quarter of 2012, was driven by the increase in originations for multifamily properties. The increase included a 31 percent increase in the dollar volume of loans for multifamily properties, a three percent increase for hotel properties, a 14 percent decrease for retail properties, a 36 percent decrease for health care properties, and office and industrial properties remained unchanged when compared to the second quarter of 2012.

Among investor types, the dollar volume of loans originated for life insurance companies increased by 16 percent from last year’s second quarter. There was a 13 percent increase for commercial bank portfolio loans, an 8 percent increase for Government Sponsored Enterprise (or GSE – Fannie Mae and Freddie Mac) loans, and a 14 percent decrease in dollar volume of loans originated for conduits for CMBS.

SECOND QUARTER 2013 ORIGINATIONS 36 PERCENT HIGHER THAN FIRST QUARTER 2013

Second quarter 2013 commercial and multifamily mortgage originations were 36 percent higher than originations in the first quarter. Compared to the first quarter, second quarter 2013 originations for hotel properties saw an 89 percent increase. There was a 75 percent increase for office properties, a 48 percent increase for retail properties, a 44 percent increase for industrial properties, a 22 percent increase for multifamily properties, and health care properties were unchanged from first to second quarter 2013.

Among investor types, between the first and second quarters of 2013, loans for life insurance companies saw an increase in dollar volume of 100 percent, loans for conduits for CMBS saw an increase in loan volume of 27 percent, originations for commercial bank portfolios increased 14 percent and loans for GSEs increased by two percent.

YEAR-TO-DATE 2013 ORIGINATIONS EIGHT PERCENT HIGHER THAN YEAR-TO-DATE 2012

Year-to-date (through the second quarter) 2013 commercial and multifamily mortgage originations were eight percent higher than originations during the same time period of 2012. Compared to 2012, year-to-date originations for multifamily properties saw a 31 percent increase. There was a 13 percent increase for hotel properties, a one percent increase for industrial properties, a two percent decrease for office properties, a 19 percent decrease for retail properties and a 27 percent decrease for health care properties.

Among investor types, year-to-date (through the second quarter) 2013 versus the same time period in 2012, loans for conduits for CMBS saw an increase in loan volume of 22 percent, loans for GSEs saw an increase in loan volume of 20 percent, originations for commercial bank portfolios increased 11 percent and loans for life insurance companies were even year-to-date 2013 versus year-to-date 2012.

To view the report, please visit the following Web link:
http://www.mortgagebankers.org/files/Research/CommercialOriginations/2Q13CMFOriginationsSurvey.pdf

For members of the news media who want more information from or about the study, contact Matt Robinson at mrobinson@mortgagebankers.org or 202-557-2727.

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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.mba.org.