MBA: Multifamily originations grew 49% in 4Q

Posted on February 4, 2013

Multifamily mortgage originations grew 49% over last year during the fourth quarter as commercial originations overall soared above 2011 levels, the Mortgage Bankers Association said in a new report Monday.

The jump in originations occurred as low interest rates prompted more borrowers to finance multifamily properties and as strength in the commercial and multifamily mortgage segment fueled investor appetite, said Jamie Woodwell, vice president of commercial real estate research at the MBA.

In just the fourth quarter of 2012, commercial and multifamily mortgage originations were up 49% from the third quarter, with hotel property originations soaring 99% quarter-to-quarter, while multifamily properties experienced a 48% increase in originations between the two quarters.

Health care property loan originations and office properties also grew 57% and 44%, respectively.

Among investor types, loans tied to conduits for CMBS saw a 141% jump in loan volume between the third and fourth quarter, while the government-sponsored enterprises saw multifamily volumes increase by 54%.

Originations for life insurance companies went up 33%, while loans for commercial bank portfolios increased 32%.

The report follows on the heels of Freddie Mac noting that its multifamily business volume — including both loan purchases and bond guarantees — reached a record of $28.8 billion, or a 42% increase, compared to $20.3 billion in 2011.

Fannie Mae also noted Monday it provided the multifamily market with $33.8 billion last year, marking the third highest acquisition year in its history.

Source: HousingWire

More CGI+ News & Press

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

Gidi Cohen’s CGI+ plans 20 stories of apartments in Hollywood

CGI+, the investment and development firm founded by Gidi Cohen, has filed updated plans for a major apartment complex in central Hollywood. The project would be located at 1830 North Cahuenga Boulevard, at the corner of Cahuenga and Franklin Avenue, a prime Hollywood location a few blocks north of the Hollywood Walk of Fame.

read more
Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

Best Bosses | Here are Real Estate Forum’s picks for Best Bosses in 2023.

The last year has not been easy for the head of a commercial real estate company. Inflation and the Fed’s response, as well as trends that emerged from the pandemic, have clearly had an impact on the industry across all of the sectors. Besides the effect of, say, ongoing remote work on the beleaguered office asset class or the slowing pace of rent increases in multifamily, these executives have also had to navigate an increasingly difficult capital markets environment. I have some bad news for this group: the near-term future doesn’t look any easier. Enter our selection of Best Bosses this year. This year’s picks were made at least in part based on their resiliency and ability to position their companies for future growth, whenever that might occur. We are confident these strengths will see them through what could be choppy waters ahead.

read more