U.S. Commercial, Multifamily Mortgage Originations Continue Strong Pace in Q2

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According to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2015 commercial/multifamily mortgage loan originations were 29 percent higher than during the same period last year and 16 percent higher than the first quarter of 2015.

"Driven by increasing property values, improving property fundamentals and still low interest rates, commercial and multifamily lending and borrowing continued its strong pace in the second quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The rate of year-over-year growth slowed from the first quarter, but year-to-date lending is up for every major lender group.  Mortgage bankers' originations for Fannie Mae and Freddie Mac are near record quarterly levels."

SECOND QUARTER 2015 ORIGINATIONS UP 29 PERCENT OVER SECOND QUARTER 2014

The overall year-over-year increase in commercial/multifamily originations volumes was led by originations for multifamily and industrial properties.  By property type, compared to the second quarter of 2014, the dollar volume of loans originated in the second quarter of 2015:

• Increased 58 percent for multifamily properties;
• Increased 32 percent for industrial properties;
• Increased 22 percent for office properties;
• Increased 17 percent for retail properties;
• Increased 16 percent for hotel property loans; and,
• Decreased 50 percent for health care property loans.

By investor type, compared to the second quarter of 2014, the dollar volume of loans originated in the second quarter of 2015:

• Increased 113 percent for Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac);
• Increased 64 percent for commercial bank portfolio loans;
• Increased 14 percent for life insurance company loans; and,
• Decreased 17 percent for Commercial Mortgage Backed Securities (CMBS) loans.

SECOND QUARTER 2015 ORIGINATIONS UP 16 PERCENT FROM FIRST QUARTER 2015

By property type, compared to the first quarter of 2015, the dollar volume of loans originated in the second quarter of 2015:

• Increased 81 percent for retail properties;
• Increased 46 percent for hotel properties;
• Increased 22 percent for multifamily properties;
• Increased 14 percent for office properties;
• Decreased 11 percent for health care properties; and,
• Decreased 60 percent for industrial properties.

By investor type, compared to the first quarter of 2015, the dollar volume of loans originated in the second quarter of 2015:

• Increased 45 percent for commercial bank portfolios;
• Increased 10 percent for life insurance companies;
• Increased 4 percent for GSEs; and,
• Decreased 10 percent for CMBS.