Multifamily Leads Production Rebound In 2000
WASHINGTON, D.C. (June 12)-Commercial mortgage bankers originated more than 6,600 loans with total production volume of $62 billion in 2000, according to a survey conducted by the Mortgage Bankers Association of America (MBA).
Commercial mortgage bankers responding to MBA's Commercial Mortgage Banker Origination Survey reported $22.8 billion in origination volume for the fourth quarter of 2000, up significantly from previous quarters. Companies, led by multifamily firms, reporting data for both 1999 and 2000 showed a 6.6 percent increase in originations in 2000 over the previous year.
"Our commercial members did very well in the last quarter of 2000, due in part to seasonal factors and declines in commercial mortgage rates," said Jay Brinkmann, MBA's senior director of research and economics.
Firms originating more than $1 billion a year originated $49.2 billion of commercial mortgages, or 79.2 percent of the total survey volume, while firms originating less than $300 million reported a volume of $4.1 billion, or 6.7 percent. Companies originating between $300 million and $1 billion, reported production of $8.8 billion, or 14.1 percent.
Multifamily properties, the survey found, accounted for the largest share of loans originated during the year, with 42.8 percent and a volume of $26.5 billion. Loans for office building properties-the next highest category-accounted for 27.7 percent and volume of $17.2 billion, and loans for retail properties accounted for 11.9 percent and volume of $7.4 billion.
The survey also found that the investor group making the most commercial loan commitments during 2000 was life insurance companies, which accounted for 25.0 percent of the total volume. Conduits-firms making loans that will be securitized and sold as commercial mortgage-backed securities-committed to 24.2 percent, and commercial banks committed to 10.5 percent. Fannie Mae made commitments of 13.3 percent.
The MBA survey included data from nearly all of the industry's larges commercial mortgage banking firms, as well as a representative sample of mid-sized and small companies.