In the fourth quarter alone, loan originations were the highest ever recorded in MBA's quarterly survey. The $37.9-billion total was $8.2 billion above third-quarter 2003 volume and $7.9 billion above fourth-quarter 2002 volume.
"The combination of the strong relative value of real estate as an investment, plentiful capital, continued low interest rates and the quickened pace of the economy's recovery fueled loan demand," says Douglas G. Duncan, MBA chief economist and senior vice president, research and business development.
Duncan predicts "the commercial real estate finance business should remain strong as we enter 2004, given our forecast of continued solid economic growth and moderate increases in credit costs."
The biggest statistical surprise was in the lending column for hotel properties. The $2.8 billion in originations for 2003 represented a 111.7% increase from 2002 volumes that were low after the Sept. 11, 2001 terrorist attacks, the MBA reports.
In percentage terms, hotel/motel lending led the way with a 94% increase from the third to fourth quarter. Healthcare lending was up by two-thirds and industrial property lending rose 45%. The leading investor gainers in percentage terms from the third to fourth quarter were credit companies (284%), Freddie Mac (71%) and Fannie Mae (41%) in the multifamily area; and commercial banks (32%).
Among the MBA's annual ranking of top multifamily and commercial loan servicers in 2003 were GMAC Commercial Holding Corp. with $213.7 billion in master and primary servicing. Next was Wachovia Securities with $120.2 billion, followed by Midland Loan Services Inc. with $83.3 billion and GEMSA Loan Services LP with $61 billion.
GMAC, GEMSA, Prudential Asset Resources and Midland are the largest servicers for life insurance companies and other private investors. Washington Mutual, Berkshire Mortgage Finance, GMAC and ARCS Commercial Mortgage Co. LP are the largest Fannie Mae/Freddie Mac servicers. GMAC, Reilly Mortgage Group Inc., Prudential, Midland Loan Servicing Inc. and Greystone Servicing Corp. Inc. are the largest FHA servicers.
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