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Commercial Lending up Big in 2013, Led by Multifamily

by devteam April 9th, 2014 | Share

Mortgages for multifamily properties outpaced otherrncommercial and multifamily mortgage originations in 2013 the Mortgage BankersrnAssociation (MBA) said today.  Thosernloans accounted for $136.9 billion in loan volume during the year out of arntotal of $358.5 in loans originated by commercial and multifamily mortgagernbankers.  The second most active propertyrntype was office buildings followed by retail properties, hotel/motel, industrial,rnand health care.  Ninety-seven percent ofrnthe dollar volume of loans were first mortgage liens.</p

The total reported loan volume increased 47 percent</bfrom what was reported in 2012, however MBA said that a growth in itsrnsurvey coverage accounted for part of the growth in loan volume.    Amongrnthe survey's repeat respondents the dollar volume of lending increased by 22rnpercent.</p

MBA’s 2013 Commercial RealrnEstate/Multifamily Finance Annual Origination Volume Summation notes that commercialrnbanks and savings institutions were the leading investor group, accounting for $100.5rnbillion of the total loan volume.  Thisrnsector was followed by CMBS issues with $79.8 billion, and then by liferninsurance companies and pension funds, Fannie Mae, and REITS.<br /<br /"Improving property markets and a strong appetite among lenders led to a veryrnactive year in commercial real estate finance,” said Jamie Woodwell, MBA’s VicernPresident of Commercial Real Estate Research.  “Multifamily rentalrnproperties drew the most financing, and banks and thrifts were the largestrnsource of commercial real estate lending.  Despite the fact there arernfewer maturing loans in need of refinancing this year, originations shouldrncontinue to be buoyed by higher property values, rising property incomes andrnstill low interest rates.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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