Commercial and multifamily mortgage loan originations were 106% higher in the second quarter of 2021 compared to a year ago and increased 66% from the first quarter of 2021, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
“Borrowing and lending tied to commercial and multifamily properties rebounded in the second quarter,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research. “Mortgage originations doubled compared to the second quarter of 2020, when loan demand cratered, and pandemic-related uncertainty made extending credit difficult. Even more notable is that compared to levels seen in 2019, a record year for originations, this year’s second quarter showed a modest 1% increase.”
Woodwell added, “Significant differences still exist between property types. Originations of loans backed by industrial and multifamily properties hit second-quarter records, while retail and lodging loan volume remained muted.”
All property types showed an increase in the second quarter in commercial/multifamily lending volumes when compared to the second quarter of 2020. The second quarter saw a 327% year-over-year increase in the dollar volume of loans for industrial properties, a 302% increase for health care properties, a 234% increase for hotel properties, a 149% increase for office properties, a 88% increase for retail properties, and a 63% increase for multifamily property loan originations.
Among investor types, the dollar volume of loans originated for Commercial Mortgage-Backed Securities (CMBS) increased by 1,913% year-over-year. There was a 144% increase for life insurance company loans, a 72% increase for commercial bank portfolio loans, and a 33% decrease in the dollar volume of Government-Sponsored Enterprises (GSEs – Fannie Mae and Freddie Mac) loans.
On a quarterly basis, second quarter originations for hotel properties increased 228% compared to the first quarter 2021. There was a 219% increase in originations for health care properties, a 76% increase for industrial properties, a 65% increase for office properties, a 62% increase for retail properties, and originations for multifamily properties increased 49%.
Among investor types, between the first and second quarter of this year, the dollar volume of loans for commercial banks portfolios increased 107%, loans for life insurance companies increased 94%, and originations for CMBS increased 76%. Only the dollar volume of loans for the GSEs decreased last quarter, by 8%.
Source: MBA
