New data from the Mortgage Bankers Association’s (MBA) indicates commercial and multifamily mortgage loan originations were 79% higher in the fourth quarter of 2021 compared to a year ago, and increased 44% from the third quarter of 2021. This is according to MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, which was released Monday at the 2022 Commercial/Multifamily Finance Convention and Expo.
Increases in originations for hotel, office, industrial, and retail properties led the overall jump in commercial/multifamily lending volumes when compared to the fourth quarter of 2020.
The findings:
- There was a 167% year-over-year increase in the dollar volume of loans for hotel properties
- 122% increase for office properties
- 113% increase for industrial properties
- 109% increase for retail properties
- 57% increase for multifamily properties
- Health care property loan originations decreased 17%, compared to the fourth quarter of 2020
- Among investor types, the dollar volume of loans originated for Commercial Mortgage-Backed Securities (CMBS) increased by 305% year-over-year
- There was a 211% increase for investor-driven lenders
- 147% increase in commercial bank portfolio loans
- 63% increase for life insurance company loans
- 30% decrease in the dollar volume of Government Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) loans
“The fourth quarter of 2021 was a record end to a record year of borrowing and lending backed by commercial and multifamily properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Part of the growth from 2020 was a bounce-back from the worst of the recession. However, rebounding property fundamentals and strong valuations, record sales transaction volumes, and low interest rates all fueled commercial and multifamily borrowing and lending activity that easily outpaced previous periods.”
