Commercial and multifamily mortgage bankers' loan originations were once again strong in the second quarter, reports the Mortgage Bankers Association's (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. Up from the first quarter, second quarter originations were 40% higher than the same period last year. The increase was seen across most property types and investor groups.
Increases in total commercial/multifamily mortgage originations were led by increases in commercial mortgage-backed securities (CMBS) conduit loans and loans financing hotel properties. The strong second quarter included heavy volume driven by real estate investment trust (REIT) privatizations and continues a trend of second-quarter-over-second-quarter increases going back to the beginning of MBA's survey in 2001.
"A number of large deals helped boost commercial/multifamily origination volumes in the second quarter," says Jamie Woodwell, MBA's Senior Director of Commercial/Multifamily research. "As a result, the quarter saw significant growth in CMBS and hotel loans. Overall, second quarter commercial/multifamily originations remained strong despite the initial phases of a general re-pricing of risk in the commercial/multifamily and other capital markets."
Absent the spate of large hotel deals, overall originations would have increased by roughly 27% and conduit originations by 42% between the second quarter of 2006 and the second quarter of 2007.