Loan originations were 10% higher than a year ago
There was a strong increase in commercial and multifamily mortgage loan originations in the second quarter of 2019.
Originations were up 10% year-over-year and 29% quarter-over-quarter according to data from the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
"Falling long-term interest rates and sustained strength in commercial real estate markets lifted commercial and multifamily mortgage originations during the second quarter," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "Originations for life insurance companies and for Fannie Mae and Freddie Mac continued at record paces during the first half of the year, as did originations of loans backed by multifamily and industrial properties. With rates even lower during the third quarter, absent a major economic disruption, 2019 is shaping up to be another record year for commercial mortgage lending."
Quarterly increase led by healthcare
Healthcare properties saw the largest percentage increase in originations by dollar volume year-over-year at 151%; and this property type also gained 62% quarter-over-quarter.
Offices saw a 66% rise quarter-over-quarter and 23% year-over-year; Industrials posted a 16% increase year-over-year but declined 27% from the first quarter.
Multifamily properties gained 32% year-over-year and 15% quarter-over-quarter.
There were annual gains for hotel properties (18%) and retail properties (15%) but these types fell year-over-year by 28% and 32% respectively.
Investor types
Year-over-year, the dollar volume of loans originated for Government Sponsored Enterprises (GSEs - Fannie Mae and Freddie Mac) increased by 19% year-over-year, and 17% for commercial bank portfolio loans. There was a 4% decrease in life insurance company loans, and a 15% decrease in the dollar volume of Commercial Mortgage Backed Securities (CMBS) loans.
Quarterly-over-quarter, the dollar volume of loans for CMBS increased 58%, loans for GSEs increased 39%, originations for commercial bank portfolios increased 35%, and loans for life insurance companies increased by 9%.
