Commercial mortgage lenders more than doubled their originations in the second quarter compared to 2Q 2010 with all property types – especially multifamily – contributing to the gains.
According to figures and an index compiled by the trade group, commercial real estate loan production grew by 52% compared to 1Q.
Preliminary survey results compiled by National Mortgage News and the Quarterly Data Report support MBA's findings. NMN/QDR found that some firms grew production by 100% or more. (NMN's results will be published in two weeks.)
"Commercial/multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010," said Jamie Woodwell, MBA's vice president of commercial real estate research. "Greater stability in property fundamentals and prices, and an improving sales market, are providing greater clarity for borrowers and lenders alike.”
The strong showing in commercial production is in contrast to the residential sector where fundings are expected to fall by 30% this year.
As for where these newly originated commercial loans are winding up, MBA said commercial conduits are leading the charge. Conduits increased their investments by a stunning 636% in 2Q compared to the same period last year. But commercial banks were strong players too (up 150%), followed by life insurance companies (+87%), and the GSEs (+58%).
