Loan Originations Hit New Record in 2006

NREI Online has a longer report about the 2006 volume of commercial mortgages. In total, it looks like the industry hit a new record, topping 2005. Retail volumes, though, were down.

The good news for mortgage bankers is flowing as fast as the capital these days.The good news for mortgage bankers is flowing as fast as the capital these days. Commercial/multifamily mortgage originations rose 3% in the fourth quarter of 2006 over the same period a year earlier, and total annual volume is expected to surpass the previous record of $201 billion set in 2005, according to the Mortgage Bankers Association.

The combination of an abundance of capital, improving property markets and innovative financing vehicles such as commercial-debt obligations (CDOs) are boosting lending volume to unprecedented heights, says Jamie Woodwell, MBA's senior director of commercial and multifamily research.

“There are a number of fronts parked over the commercial/multifamily world that are leading us to some pretty calm seas,” says Woodwell. The researcher's remarks came during a media luncheon at the Marriott hotel in downtown San Diego on Monday as part of MBA's annual commercial/multifamily convention. The event has drawn about 5,000 attendees.

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