Commercial/Multifamily Originations Hit Record in 2007

May 6, 2008 No Comments »

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Despite the ongoing mortgage crisis, commercial/multifamily loan origination volume climbed 19 percent in 2007, according to the Mortgage Bankers Association.

Increases were seen across virtually all property types and investor groups as mortgage bankers closed $507.7 billion in commercial/multifamily loans.

Jamie Woodwell, MBA’s Senior Director of Commercial/Multifamily Research, said that despite the credit crunch, commercial originations set a record in 2007 and displayed the depth of funding sources like Fannie and Freddie.

Lending for office properties led the way, surging 36 percent between 2006 and 2007, followed by multifamily, health care, and hotel/motel increases.

Office building represented $140.7 billion, or 28 percent of the lending total, while retail and industrial properties experienced slight declines from 2006.

Conduits were the single largest investor group, responsible for $225.2 billion, or 44 percent of the closed loan volume.

Among the investors, Freddie Mac saw the greatest percentage increase in volume between 2006 and 2007, followed by sister Fannie Mae.

It’s important to note that the commercial/multifamily lending tapered off in the second half of 2007 after running 38 percent ahead of 2006 levels in the first half of the year.

(photo: acullador)

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