Commercial and multifamily mortgage originations were 25% lower in the first quarter of this year than during the fourth quarter of 2010, according to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. However, the MBA noted that these originations were also 89% higher than during the same period last year.
The decrease from the fourth quarter of 2010, according to the MBA, reflects the industry's push to finalize deals before the end of the year and subsequent drop-offs in first-quarter numbers.
‘The pace of commercial and multifamily mortgage lending continued to increase in the first quarter of this year,’ says Jamie Woodwell, MBA's vice president of commercial real estate research. ‘Commercial/multifamily mortgage origination volumes for the first three months of 2011 were the highest of any first quarter since 2002, and were nearly double the volume seen during the first quarter of 2010.’
The quarter-to-quarter data includes an 83% decrease for healthcare properties, a 48% decrease for retail properties, a 44% decrease for hotel properties, a 28% decrease for multifamily properties and a 15% decrease for office properties. Originations for industrial properties increased 12%.Â
Among investor types, first-quarter 2011 originations for conduits for commercial mortgage-backed securities decreased 58% compared to in the fourth quarter of 2010. There was also a 45% decrease for government-sponsored enterprises and a 15% decrease for life insurance companies. Originations for commercial bank portfolios increased by 21%.
The full report is available online. http://www.mortgagebankers.org/files/Research/CommercialOriginations/1Q11CMFOriginationsSurvey.pdf.
