Coming off of a weak 2009, commercial and multifamily mortgage origination volumes increased 44% in 2010, with mortgage bankers reporting $118.8 billion of closed commercial and multifamily loans, according to the Mortgage Bankers Association's (MBA) 2010 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation.
‘Low interest rates, coupled with improving economic fundamentals, have the potential to draw out even more borrowers in 2011,’ says Jamie Woodwell, the MBA's vice president of commercial real estate research.
Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA), collectively, were the largest investor group last year, responsible for $42.8 billion of the total. Life insurance companies and pension groups followed, originating $30.6 billion.
By property type, multifamily properties saw the highest volume, at $48.9 billion, followed by office properties with $22.6 billion of originations. First liens accounted for 92% of the total dollar volume closed.
Lending for office properties had the largest percentage increase in originations by property type, followed closely by hotel/motel properties and retail.
A copy of the report is available via the MBA's online store.
SOURCE: Mortgage Bankers Association
