MBA: Commercial Volume Strong in 1Q

Commercial and multifamily mortgage originations got off to a strong start in the first quarter, totaling $18.9 billion, up 38% from the volume recorded a year earlier, according to a quarterly survey of "key commercial members" by the Mortgage Bankers Association of America.The total was off considerably from the $29.4 billion in commercial/MF originations reported for the fourth quarter, but the MBA said such a decline is normal after the "customary surge" in year-end activity. "The pace of new lending is particularly impressive in light of uncertainties during the first quarter about the future of economic growth, the weak fundamentals in many commercial real estate markets, and the course of the war in Iraq," said MBA chief economist Douglas Duncan. The MBA said the first-quarter volume was "buoyed by marked increases in investment" in commercial mortgages by commercial mortgage-backed securities conduits and commercial banks. Investment by CMBS conduits rose $3.2 billion, or 86%, from that of a year earlier, and commercial bank investment climbed $967 million, or 50%, the MBA said. The group can be found online at http://www.mbaa.org.