Multifamily Properties Biggest Volume Of Mortgage Bankers Originations In 2017

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Multifamily properties led as commercial and multifamily mortgage bankers closed a record $530.1 billion of loans in 2017, according to the Mortgage Bankers Association’s (MBA) 2017 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation, according to a release.

“2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates, and a ready supply of mortgage capital all contributing to extraordinarily attractive finance markets,” Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, said in the release.

“We expect another robust year in 2018, even with the slight increase in interest rates, although perhaps not quite as robust as 2017.”

Commercial banks were the leading investor group for whom loans were originated in 2017, responsible for $151.2 billion of the total. Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) saw the second highest volume, $130.0 billion, and were followed by commercial mortgage-backed securities (CMBS) issuers; life insurance companies and pension funds; and REITS, mortgage REITS and investment funds.

Multifamily properties led the way

In terms of property types, multifamily properties saw the highest volume of mortgage bankers’ origination volume, $233.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 96 percent of the total dollar volume closed.

The reported dollar volume of commercial and multifamily mortgages closed in 2017 was eight percent higher than the volume reported in 2016. Among repeat participants in the survey, the dollar volume of closed loans increased by seven percent.

For a copy of the report please visit MBA’s Online Store. If you are a member of the media and would like a copy of the report please contact Ali Ahmad at aahmad@mba.org
About the Mortgage Bankers Association:

As the leading advocate for the real estate finance industry, the MBA represents and serves its members through a comprehensive array of capabilities and tools that enable members to successfully deliver fair, sustainable and responsible real estate financing within ever-changing business environments