The fourth quarter traditionally has the highest level of originations for the year. In 2000 originations jumped from $14.3 billion to $22.8 between the third and fourth quarters. The smaller change between the third and fourth quarters of 2001 is most likely due to tighter credit standards associated with the recent downturn in the economy, increased office vacancies and problems in the hospitality industry.

The biggest annual increase was for multifamily lending, which saw a 33% increase in 2001 over 2000. Multifamily loans accounted for 48% of all originations in 2001, versus 43% in 2000.

The biggest decline was for health care properties, which dropped almost 50% or about $1 billion.

Lending for office building properties dropped by almost $400 million, and as a percent of total originations from 28% in 2000 to 23% in 2001. In contrast, lending for retail properties was $1.2 higher in 2001 than in 2000.

Consistent with the big increase in multifamily lending was the increase in loans funded by Fannie Mae and Freddie Mac. Loans originated for Fannie Mae increased $4.5 billion in 2001, a 55% increase over 2000. Freddie Mac-funded loans increased $2.9 billion over the previous year, an increase of 86%.

The shares of loans originated for life companies and CMBS conduits remained about the same in 2001 versus 2000. The life company share dropped slightly from 25% to 24%, while the CMBS conduit share increased from 24% to 25% percent.