Commercial, Multifamily Mortgages Totaled $244.2 Billion in 2012
Mortgages for commercial and multifamily units totaled $244.2 billion in 2012, according to the Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation released April 17 by the Mortgage Bankers Association, MBA NewsLink reported.
The reported dollar volume of commercial and multifamily mortgages closed in 2012 was 33 percent higher than in 2011, the survey revealed. The dollar volume of closed loans jumped 15 percent among repeat participants in the survey.
The survey found that mortgages originated for Fannie Mae, Freddie Mac and the Federal Housing Administration represented the leading investor group, closing $77.6 billion in loans last year.
Commercial banks and savings institutions posted the second-highest loan volume with $56.9 billion, followed by life insurance companies and pension funds; commercial mortgage-backed securities issuers; real estate investment trusts, mortgage REITs and investment funds; and credit companies and specialty finance firms.
The survey revealed that multifamily properties ranked highest in origination volume for property types with $103.2 billion, followed by retail properties, office buildings, industrial, hotel/motel and health care facilities.
“The commercial and multifamily mortgage market saw solid growth during 2012,” Jamie Woodwell, vice president of commercial real estate research for MBA told MBA NewsLink. “The multifamily market continued to be a major driver of activity, and nearly every investor group increased their activity from the year before. With a continuation of low interest rates and improving property markets, originations are on track for continued growth this year.”