MBA: Commercial Lending Sets Record in 3Q

Commercial and multifamily mortgage lending set a new record in the third quarter, totaling $29.7 billion, up from $29.5 billion in the second quarter, according to the Mortgage Bankers Association.Third-quarter originations are also up 45% from the third quarter of last year, the MBA said. If this trend continues, loan production for the year could "easily exceed" $100 billion, the association said. Loans on all property types increased in the third quarter compared with those of a year earlier. Industrial park lending rose 64%, retail property lending 60%, office lending 58%, and multifamily lending 29%. MBA chief economist Douglas Duncan said that "the upturn in long-term rates in mid-June caused a number of borrowers to lock in deals that closed during the third quarter." In addition, the most recent employment trends "bode well" for property revenues, he said. Multifamily lending accounted for 41% of the originations. Fannie Mae and Freddie Mac led the pack in multifamily lending, and their total share rose 42% from that of a year earlier.