Commercial/Multi-family Loan Volume Increased One-third in 2012

Real estate loans for multi-familyrnproperties led all commercial and multi-family loan originations in 2012rnaccording to the Mortgage Bankers Association (MBA).  Commercial and multi-family loan originationsrntotaled $244.2 billion for the year of which $103.2 billion was forrnmulti-family properties.  The year’srntotal of all loans was an increase of 33 percent from 2011. </p

Multi-family loan originations werernfollowed in dollar volume by originations for retail properties, officernbuildings, and then industrial properties. Hotel/motel and health care had thernlowest level of originations.</p

Among investor types, loans originatedrnfor Fannie Mae, Freddie Mac, and FHA collectively totaled $77.6 billion andrnwere the most active investor group.  Commercialrnbanks and savings institutions were second with $59.9 billion.  </p

 “The commercial and multifamily mortgagernmarket saw solid growth during 2012,” said Jamie Woodwell, MBA’s Vice Presidentrnof Commercial Real Estate Research.  “The multifamily market continued tornbe a major driver of activity, and nearly every investor group increased theirrnactivity from the year before.  With a continuation of low interest ratesrnand improving property markets, originations are on track for continued growthrnthis year.”

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