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Commercial and Multifamily Originations Continued to Rise in Third Quarter of 2014

Commercial Mortgage
Posted on 
November 4, 2014

With commercial and multifamily loan origination volumes five percent higher than this time last year, now is a great time to expand into the small-balance commercial mortgage industry. This niche is under-served and full of potential, since small-balance loans don’t usually garner much interest from banks and other commercial lenders. As the economy continues to improve, small business owners will be looking for financing opportunities, giving you the opportunity to earn added income.

Commercial and multifamily origination is up according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations. The organization reported that commercial and multifamily loan originations are up 16 percent from the same period in 2013 and up 18 percent from the second quarter of 2014.

“Commercial real estate borrowing and lending continued at a strong clip in the third quarter,” said Jamie Woodwell, MBA’s vice president of commercial real estate research in an article published on National Mortgage Professional’s website. “Low rates coupled with growth in property incomes, property values and sales transactions have pushed year-to-date commercial and multifamily mortgage originations five percent above last year’s pace.”

The 16 percent year-over-year increase was driven by an increase in originations for multifamily and industrial properties, according to the report. There was a 41 percent increase in the dollar volume of loans for multifamily properties, as well as a 22 percent increase for industrial properties. Other commercial property types that fared well in the third quarter  included office properties with an 11 percent increase, retail properties with an 11 percent increase, and hotels with a four percent increase.

The 18 percent increase from the second quarter to the third quarter can be attributed mainly to office, multifamily and industrial property originations, with increases of 43 percent, 31 percent and 19 percent, respectively. Originations for hotel properties also increased seven percent from the second quarter to the third quarter.

Questions about the small-balance commercial mortgage market? Interested in talking over a loan scenario? Call APEX Mortgage at 800-262-2739.


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