MBA: Commercial/MF Originations Plunge

Commercial and multifamily loan originations plummeted 53% in the first quarter on a year-over-year basis, according to the Mortgage Bankers Association. The MBA said its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations found year-over-year declines across all property types and most investor groups. "Three trends jump out from this quarter's figures: the impact of the credit crunch; a return from the extraordinary record origination volumes of 2005, 2006 and 2007; and strong variation between different investor groups," said Jamie Woodwell, the MBA's senior director of commercial/multifamily research. "First-quarter originations for the CMBS market were at their lowest since the survey began in 2001, originations for life companies and for banks and thrifts fell to levels last seen in 2004, and originations for the government-sponsored enterprises Fannie Mae and Freddie Mac hit record highs for a first-quarter." The MBA said the year-over-year origination swoon included the following declines by property type: office, 75%; hotel, 60%; retail, 53%; industrial, 37%; multifamily, 27%; and health care, 15%. Among investor types, year-over-year declines were recorded for conduits for commercial mortgage-backed securities, 96%; commercial banks, 28%; and life insurance companies, 25%. However, the dollar volume of loans for GSEs rose 62%.