WASHINGTON, DC-Third quarter 2010 commercial and multifamily mortgage loan originations rose 32% compared to the same period last year. They were also 15% higher than Q3, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The low interest-rate environment was a factor, said Jamie Woodwell, MBA’s vice president of commercial real estate research, in the report. MBA was not able to return a call to GlobeSt.com in time for publication.
Lending activity was driven by increases in originations for multifamily and industrial properties. Namely, there was a 129% increase in loans for industrial properties, a 37% increase in loans for multifamily properties, a 36% increase in loans for office assets and a 19% increase in loans for retail properties. Not all sectors experienced gains, though: there was also a 20% decrease in hotel property loans and a 46% decrease in health care property loans.
Origination volumes for life companies and Fannie Mae and Freddie Mac were relatively strong during the third quarter. Also, originations for CMBS remained very low in absolute terms but picked up considerably on a percentage basis. However, commercial mortgage borrowing at banks fell on both a quarter-over-quarter and year-over-year basis.
Loans for conduits for CMBS saw an increase of 940% compared to last year’s third quarter. There was also a 154% increase in loans for life insurance companies. Loans for the GSEs, though, dropped by 16% and by 49% for commercial bank portfolios.
Compared to second quarter activity, lending activity broke down as follows: loans for conduits for CMBS saw an increase in loan volume of 43%; originations for the GSEs, 42%; loans for life insurance companies saw an increase of 20%; and loans for commercial bank portfolios decreased by 27%.
Compared to the second quarter, third quarter originations for healthcare properties saw an 84% increase. There was a 50% increase for multifamily properties, an 18% increase for industrial properties, a12% increase for retail properties, an 18% decrease for office properties, and a 54% decrease for hotel assets.
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