MBA Reports Record End to Year for CRE Borrowing and Lending
“Rebounding property fundamentals and strong valuations, record sales transaction volumes, and low interest rates all fueled commercial and multifamily borrowing and lending activity that easily outpaced previous periods.”
SAN DIEGO–Commercial and multifamily mortgage loan originations were 79% higher in the fourth quarter of 2021 compared to a year ago, and increased 44% from the third quarter of 2021. This is according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, which was released today at the 2022 Commercial/Multifamily Finance Convention and Expo.
GlobeSt.com was in attendance at the event, where Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, noted that the fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales transaction volumes, and low interest rates all fueled commercial and multifamily borrowing and lending activity that easily outpaced previous periods.”
According to the survey, increases in originations for hotel, office, industrial, and retail properties led the overall jump in commercial/multifamily lending volumes when compared to the fourth quarter of 2020. There was a 167% year-over-year increase in the dollar volume of loans for hotel properties, a 122% increase for office properties, a 113% increase for industrial properties, a 109% increase for retail properties, and a 57% increase for multifamily properties. Health care property loan originations decreased 17% compared to the fourth quarter of 2020.
Among investor types, the dollar volume of loans originated for Commercial Mortgage-Backed Securities (CMBS) increased by 305% year-over-year, the survey said. There was a 211% increase for investor-driven lenders, a 147% increase in commercial bank portfolio loans, a 63% increase for life insurance company loans, and a 30% decrease in the dollar volume of Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) loans.
Check back with GlobeSt.com for more from the MBA event.