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.
“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,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “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.
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.
About The Mortgage Bankers Association
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,300 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies and others in the mortgage lending field.