Commercial and multifamily mortgage loan originations increased 19% in the second quarter of 2022 compared to the same period last year, reports the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Borrowing and lending backed by commercial real estate set another quarterly record from April through June, although the pace of increase slowed from the first quarter,” says Jamie Woodwell, MBA’s vice president of commercial real estate research. “Property owners, investors and lenders continue to work through broader economic uncertainty that is affecting the space, equity and debt markets.”
“MBA is forecasting that borrowing and lending will slow during the second half of the year,” Woodwell adds. “That said, improvements in fundamentals and values in recent years provide significant support to properties with outstanding loans and continued financing opportunities for properties whose cash flows can support debt.”
Compared to a year earlier, a rise in originations for retail, hotel and multifamily led the overall increase in commercial/multifamily lending volumes. By property type, retail increased by 108%, hotels increased by 37%, multifamily increased 24%, industrial increased 3%, office decreased 11% and health care decreased by 3%.
Among investor types, the dollar volume of loans originated for depositories increased by 102% year-over-year, government-sponsored enterprises (GSE, such as Fannie Mae and Freddie Mac) increased 29%, and investor-driven lenders increased 12%. Commercial Mortgage-Backed Securities (CMBS) decreased 57% and lending for life insurance company portfolios decreased 5%.
On a quarterly basis, second quarter originations for retail properties increased 79% compared to the first quarter 2022. There was a 70% increase in originations for health care properties, an 18% increase for multifamily properties, a 14% increase for office properties, a 2% decrease for hotel properties, and originations for industrial properties decreased 26%.
Among investor types, the dollar volume of loans for depositories increased 42%, investor-driven lenders increased 20%, originations for GSEs increased 18%, and life insurance company loans increased 2%. Commercial Mortgage-Backed Securities (CMBS) decreased 52%.
Read the full report here.
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