Commercial/MF Volume Hit Record High in '07

The commercial/multifamily originations market grew 19% in 2007, with mortgage bankers closing $507.7 billion in commercial/multifamily loans, according to the Mortgage Bankers Association. Most property types and investor groups recorded increases, led by loans for office buildings and loans intended for commercial mortgage-backed securities, collateralized debt obligations, and other asset-backed security conduits, the MBA reported. Conduits, the largest single investor group, were responsible for $225.2 billion, or 44% of the closed loan volume. Office buildings were the dominant property type, representing $140.7 billion, or 28% of the lending total. Among major investor groups, Freddie Mac recorded the greatest percentage increase in volume in 2007, followed by Fannie Mae; CMBS, CDO, and other ABS conduits; real estate investment trusts; and life insurance companies.