Commercial lenders reported a continued influx of borrowers, according to an industry report.
The Mortgage Bankers Association of America's (MBAs) quarterly survey of key commercial members reported $18.9 billion in originations for the first quarter of 2003. This total compares favorably to first quarter 2002, coming in 38 percent higher, according to the report. However, compared to second and third quarters 2002, the $18.9 billion in originations appears closer to average. In 2002, origination volume was as follows: quarter one: $12.4 billion, quarter two: $20.4 billion, quarter three: $17.8 billion, and fourth quarter: $29.4 billion.
According to the report, fourth quarter surges are customary, followed by a low in first quarter reports.
Douglas Duncan, MBA senior vice president and chief economist, also put some of the blame for this year's first quarter performance on economic uncertainties including the course of the war in Iraq, according to the document.
The report stated that multifamily housing represented 40 percent of originations and that volume increased 10 percent from last year. Lenders also reported that participation by Fannie Mae and Freddie Mac on these commercial loans has dropped from more than 50 percent last year's first quarter to 37 percent for first quarter 2003. FHA participation is up 65 percent, according to the commercial lenders.
Industrial lending is the only segment where origination decreased compared to last year, the study said.