MBA: Commercial/MF Originations Dive Again

Commercial and multifamily loan originations dropped in the second quarter to a level 63% below that of a year earlier, according to the Mortgage Bankers Association. The MBA said its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations found year-over-year declines across most property types and investor groups. "The slowdown in originations has come from both a decrease in supply of capital available and a decrease in the demand for new mortgages," said Jamie Woodwell, the MBA's vice president of commercial/multifamily real estate research. "It is likely volumes will remain muted until buyers, sellers, borrowers, lenders, and their expectations of rates and terms match closely enough for transaction activity to pick back up." The MBA said the year-over-year origination nosedive included the following declines by property type: hotel, 87%; health care, 66%; office, 65%; retail, 63%; industrial, 57%; and multifamily, 42%. Among investor types, year-over-year declines were recorded for conduits for commercial mortgage-backed securities, 98%; commercial banks, 29%; and life insurance companies, 27%. However, the dollar volume of loans for GSEs rose 66%.