Wednesday, April 9, 2014

Commercial Lending Increased in 2013

The Mortgage Bankers Association (MBA) issued commercial loan numbers for last year in its "2013 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation."

According to MBA, commercial and multifamily mortgage bankers closed $358.5 billion in loans. Commercial banks and savings institutions were the leading investor groups with $100.5 billion. CMBS (commercial mortgage-backed securities) had the second highest volume, $79.8 billion, followed by life insurance companies and pension funds; Fannie Mae; REITS, mortgage REITS and investment funds; and Freddie Mac.

Multifamily properties saw the highest origination volume, $136.9 billion, followed by office buildings, retail properties, hotel/motel, industrial and health care. First liens accounted for 97 percent of the total dollar volume closed.

"Improving property markets and a strong appetite among lenders led to a very active year in commercial real estate finance," says Jamie Woodwell, MBA's vice president of commercial real estate research. "Multifamily rental properties drew the most financing, and banks and thrifts were the largest source of commercial real estate lending. Despite the fact there are fewer maturing loans in need of refinancing this year, originations should continue to be buoyed by higher property values, rising property incomes and still low interest rates."

Driven in part by increased coverage, the report's dollar volume for commercial and multifamily mortgages closed in 2013 was 47 percent higher than the volume reported in 2012. Among repeat participants, the dollar volume of closed loans rose by 22 percent.

MBA sells the report online: $250 for non-members and $150 for members. For more information, visit MBA's Online Store.

© 2014 Florida Realtors®

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