MBA: Commercial/MF Originations Rose 10%

Commercial and multifamily mortgage originations were up 10% in 2006, with mortgage bankers closing a record high $406.1 billion in commercial and multifamily loans, according to the Mortgage Bankers Association.The trade group said loans backed by office properties and loans for commercial bank and savings institution portfolios led the increase. "Conduits packaging loans for commercial mortgage-backed securities, collateralized debt obligations, and other asset-backed securities continued to be the dominant investor group in 2006, and office properties surpassed multifamily as the dominant property type," said Jamie Woodwell, the MBA's senior director for commercial/multifamily research. The increase in originations in 2006 was driven both by higher loan amounts -- the average loan size rose to $11.5 million -- and by the closing of a greater number of loans. Among major investor groups, real estate investment trusts saw the greatest percentage increase in volume in 2006, followed by commercial banks/thrifts.