Commercial/Multifamily Originations Fall in Fourth Quarter

February 4, 2008 No Comments »

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Commercial and multifamily loan originations fell 16 percent in the fourth quarter compared to the same period a year ago, led by a drop in commercial mortgage-backed security (CMBS) conduit loans, according to the Mortgage Bankers Association’s Quarterly Survey released today.

Despite the year-over-year decline, loan originations were 11 percent higher in the fourth quarter compared to the third quarter of 2007, holding to a typical seasonal trend.

Interestingly, mortgage bankers originated 38 percent more loans by dollar volume in the first half of 2007 compared to the first half of 2006.

But the overall drop was led by a soft second half of the year in the CMBS market, as originations fell 11 percent compared to the second half of 2006.

Fourth quarter originations decreased in most property types except for hotel and healthcare properties, which increased 349 percent and 3 percent respectively, compared to the same period a year ago.

The decline was marked by a 73 percent drop in loans for office properties, a 50 percent decrease in loans for industrial properties, a 38 percent decrease for retail properties, and a 7 percent decrease in loans for multifamily properties.

(photo: general wesc)

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