Commercial/Multifamily Lending Came on Strong in Q4; MBA Expects Healthy 2014

The Mortgage Bankers Association (MBA)rncalled the fourth quarter of 2013 a particularly strong one for commercial andrnmultifamily mortgage originations, with a total volume of around $280 billion inrnclosed loans, the highest volume since 2007. rnPreliminary figures indicate that the volume for the entire year was uprn15 percent from 2012 and increased 34 percent between the third and finalrnquarter of 2013. </p

Despite the strong annual figuresrnmultifamily lending was essentially flat between Q4 2012 and Q4 2013 while healthrncare, retail, and office properties drove the market; healthcare lendingrnincreased 70 percent during that period. rn From Q3 to Q4 however everyrnsector except office properties increased by double digits and multifamilyrnoriginations had the strongest showing, increasing 44 percent, well above the runner-uprnretail sector with a 34 percent increase. rn </p

Among investor types Fannie Mae andrnFreddie Mac, the government sponsored enterprises or GSEs, had a particularly poorrnshowing when the two fourth quarters are compared.  The GSE originations, which would byrndefinition almost entirely multifamily, were down by 43 percent year-over-yearrnand were off 18 percent for the year-to-date. rnHowever this sector came back strongly between the third and fourthrnquarter with the dollar volume of originations rising 48 percent.  </p

Commercial banks increased the volume ofrnmortgages originated in the sector by 54 percent year-over-year and 44 percentrnquarter over quarter.  CMBS/Conduits werernup 15 percent from Q4 3012 and 35 percent from the third to the fourth quarter.rn</p

MBA is predicting an even better marketrnin 2014, expecting that commercial and multifamily mortgage originations willrnreach $300 billion, 7 percent more than in 2013.  Of that number MBA projects multifamilyrnmortgage originations to reach $116,000. rnBy 2016 commercial/multifamily originations will rise to $333 billion.</p

“Early indications are thatrncommercial and multifamily lenders increased originations by 15 percent inrn2013,” said Jamie Woodwell, MBA’s Vice President of Commercial Real EstaternResearch.  “This year will once again see fewer loans coming up against theirrnmaturities.  But with still low interest rates, improving propertyrnfundamentals, a rebound in property prices, and higher loan maturity volumes onrnthe horizon, we anticipate mortgage originations will continue to increase inrn2014.”<br /<br /Commercial/multifamily mortgage debt outstanding is expected to continue torngrow in 2014, ending the year at almost $2.6 trillion, more than three percentrnhigher than at the end of 2013.  By the end of 2016, mortgage debtrnoutstanding is forecasted to approach $2.7 trillion. 

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.