Commercial, Multifamily Lending Up to $244B in 2012

Commercial and multifamily mortgage bankers closed $244.2 billion of loans in 2012, according to the Mortgage Bankers Association, most of which were government-sponsored loans.

“Driven in part by greater coverage,” the MBA noted in that the reported dollar volume of commercial and multifamily mortgages closed in 2012 was 33% higher than in 2011.

Loans originated for Fannie Mae, Freddie Mac and FHA totaled $77.6 billion, and represented the leading investor group.

And first liens accounted for 98% of the total dollar volume.

The MBA’s 2012 Commercial Real Estate/Multifamily Finance Annual Origination report shows that at $56.9 billion the second highest volume was originated by commercial banks and savings institutions.

Multifamily properties remain the most popular due to historically high rental demand reaching $103.2 billion.

MBA VP of commercial real estate research, Jamie Woodwell, argued that compared to 2011 the solid growth of the commercial and multifamily mortgage market during 2012 resulted from increased activity by “nearly every investor group.”

Mostly due to low interest rates and improving property markets, she added, “originations are on track for continued growth this year.”