U.S. Commercial, Multifamily Mortgage Originations Up 12% Annually in Q3

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Based on the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, third quarter 2015 commercial and multifamily mortgage loan originations were 12 percent higher than during the same period last year and three percent higher than the second quarter of 2015.

"Commercial mortgage borrowing and lending continued to grow during the third quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.  "Every major investor group and property type except one has seen increases in year-to-date lending volumes, and we expect year-end numbers to continue that trend."

Increases in originations for retail and office properties led the overall increase in commercial and multifamily lending volumes when compared to the third quarter of 2015.  The increase included a 39 percent increase in the dollar volume of loans for retail properties, a 17 percent increase for office properties, an 11 percent increase for multifamily properties, a 10 percent increase for industrial properties, a nine percent decrease in hotel property loans, and health care property loans decreased 30 percent year-over-year.

Among investor types, the dollar volume of loans originated for commercial bank portfolio loans increased by 93 percent from last year's third quarter.  There was an 18 percent increase for life insurance company loans, a three percent decrease for Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) loans, and an eight percent decrease in dollar volume for Commercial Mortgage Backed Securities (CMBS) loans.

Third quarter 2015 originations for office properties increased 37 percent compared to the second quarter 2015.  There was a 27 percent increase in originations for retail properties, a five percent increase for health care properties, a one percent decrease for industrial properties, an eight percent decrease for multifamily properties, and a 29 percent decrease for hotel properties from the second quarter 2015.

Among investor types, between the second and third quarter of 2015, the dollar volume of loans for CMBS increased 22 percent, loans for life insurance companies increased 13 percent, originations for commercial bank portfolios increased nine percent, and loans for GSEs decreased by 28 percent.