The CRE industry has been monitoring bank lending — particularly delinquencies, net charge-offs, and criticized loans. While all are important, it’s worthwhile to examine originations. They seem on the mend.

Trepp looked at trends in its Trepp’s Anonymized Loan-Level Repository (T-ALLR) data set, which includes bank balance sheet loan data. That is a “diverse set of loans totaling about $195 billion sourced from multiple banks.”

Originations are improving. In the third quarter, origination volume was $4.4 billion, up from $3.9 billion in Q2 and $3.5 billion in Q1. Originations “rebounded” in 2024. Multifamily Q3 originations were up 76% year over year. Some of the factors pushing the increase were declining financing costs and pent-up demand from postponed 2023 transactions.

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