Commercial, Multifamily Originations Drop 26 Percent In Q1

cial and multifamily mortgage loan originations continued to drop in the first quarter of 2009, according to the Mortgage Bankers Association's (MBA) [u][link=www.mortgagebankers.org/files/Research/CommercialOriginations/1Q09CMFOriginationsSurvey.pdf]Quarterly Survey[/link][/u] of Commercial/Multifamily Mortgage Bankers Originations. First-quarter originations were 70% lower than during the same period last year and 26% lower than during the fourth quarter of 2008. The year-over-year decrease was seen across all investor groups and most property types. "In the first quarter of 2009 we saw the effects of the continued recession coupled with little demand from borrowers and a constrained supply from lenders as a result of the credit crunch," says Jamie Woodwell, vice president of commercial real estate research at the MBA. "The net result was low levels of new originations." Decreases in total commercial/multifamily mortgage originations continued to be led by a drop in commercial mortgage-backed security (CMBS) conduit loans. Among investor types, loans for conduits for CMBS saw a decrease in loan volume of 83% compared to the fourth quarter of 2008, loans for commercial bank portfolios saw a decrease in loan volume of 37% compared to the fourth quarter of 2008, GSEs' volume decreased by 17% during the same time span, and life insurance companies decreased 7% from the fourth-quarter 2008 to first-quarter 2009. Compared to the fourth quarter of 2008, first quarter originations for health care properties saw a 72% decrease. There was a 39% decrease for multifamily properties, a 9% decrease for retail properties, a 4% decrease for office properties, a 67% increase for industrial properties, and hotel properties remained relatively unchanged. SOUR

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