CMBS, Hotels Lead Increase in CRE Lending

Third-quarter commercial mortgage originations, including multifamily loans, came in 8 percent higher than during the preceding three-month period.

The ascension was much more significant compared to the same three months last year,
with escalation of 21 percent on a year-over-year basis.

Those details were included in the
Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations | Q3 2017 from the Mortgage Bankers Association.

Based on the report, as well as previously reported MBA origination data, Mortgage Daily estimates that CRE loan production during the three months ended Sept. 30, 2017, came to
$150.5 billion.

Estimated commercial mortgage lending was $139.5 billion in the second quarter of this year and $124.7 billion in the third quarter of last year.

A whopping 42 percent surge in lending from a year earlier was reported for commercial mortgage-backed securities and conduits — the biggest gain of any investor type. Securitized CRE lending hasn’t been this high since the final quarter of 2007 based on historical data from the trade group.

CRE loan production at Fannie Mae and Freddie Mac during the third-quarter 2017 was up 22 percent from a year earlier to the highest level on record based on MBA data back to 2004. Government-sponsored enterprise CRE volume primarily consists of multifamily loans.

Commercial banks saw a 21 percent increase from the third-quarter 2016.

Life insurance companies had a 2 percent decrease from a year prior.

By property type, hotel lending soared 116 percent from the same three-month period in 2016 — the largest year-over-year increase.

Health care loan production rose 97 percent, industrial property loan originations climbed by a fifth, and multifamily volume was up 15 percent. An 8 percent increase was recorded for lending on office buildings.