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The Mortgage Bankers Association (MBA) has released their Quarterly Survey of Commercial/Mulitfamily Mortgage Bankers Association Originations Index for the first quarter of 2018. While this quarter’s originations were 33 percent lower than fourth quarter of 2017, there was a one percent increase in commercial and multifamily mortgage loan originations compared to first quarter 2017.
According to the MBA website, the index provides quarter-year updates on fluctuations in the originations market, detailing the changing volume of loans originated and breaking down data by property type and investor type.
The index reveals that borrowing and lending through commercial real estate occurred at a similar pace as the year before. Regarding property types, there was a decline in retail originations and an increase in multifamily and industrial. In addition, originations for loans for life insurance company, and Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, had the strongest record this quarter.
Key Findings
- In the first quarter of 2018, the year-over-year increase, or decrease, in the dollar volume for property types included a
- 54 percent increase for hotel properties;
- 18 percent increase for multifamily properties;
- 14 percent increase for industrial properties;
- 1 percent decrease for office properties;
- 27 percent decrease in retail property loans; and a
- 39 percent decrease in health care property loans.
- For investor types, the year-over-year dollar volume of loan originations had a
- 12 percent increase for Commercial Mortgage Backed Securities (CMBS);
- 9 percent increase for life insurance company loans;
- 8 percent increase for GSEs; and a
- 23 percent decrease for commercial bank portfolios.
To read the full index report, click here.