MBA: Commercial mortgage originations up, forecast high for 2012

The Mortgage Bankers Association announced its mortgage records for last year show commercial loan originations spiked substantially, while 2012 is expected to see a considerable increase from that total.

The Mortgage Bankers Association announced its mortgage records for last year show commercial loan originations spiked substantially, while 2012 is expected to see a considerable increase from that total.

In 2011, the MBA reports commercial and multifamily mortgage originations were 64 percent higher than the year before. During the fourth quarter, originations increased 13 percent from the previous three-month period.

"In the fourth quarter, multifamily originations for Fannie Mae and Freddie Mac hit a new all-time high," said MBA vice president of commercial real estate research Jamie Woodwell. "While the CMBS market continued to be held back by broader capital markets uncertainty during the past year, others – like the GSEs, life companies and many bank portfolios – increased their appetite for commercial and multifamily loans."

A separate release from the MBA shows the organization believes commercial and multifamily loan originations will increase during 2012 by roughly $230 billion - a 17 percent jump from the total a year earlier. Additionally, that figure is expected to rise markedly the next three years.

National Multi Housing Council chief economist Mark Obrinsky noted in the group's latest apartment market report that the multifamily industry continues to perform well, which means mortgage originations for these properties could lead the way in the commercial market this year.



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