Commercial real estate loans originated for securitization soared from the prior quarter, while government-sponsored CRE financing activities had the biggest gain from a year prior.
In its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations | Q2 2018, the Mortgage Bankers Association reported an Origination Volume Index of 264.
Based on an analysis of MBA’s data using previously reported prior-period data from the trade group, Mortgage Daily estimates that second-quarter originations worked out to around $136.4 billion.
MBA’s report indicated that aggregate commercial real estate loan production by all U.S. originators soared 32 percent from the first quarter of this year.
Compared to the same three-month period last year, a more modest 4 percent gain was made.
Making the largest quarter-over-quarter improvement were loans originated for commercial mortgage-backed securities/conduits, which skyrocketed 79 percent. CMBS/Conduits were 8 percent lower, though, than the second quarter of 2017.
Fannie Mae and Freddie Mac, which both provide secondary financing for multifamily housing, had a one-third gain from the prior period and an 18 percent year-over-year gain — the biggest of any type.
Commercial banks pushed up commercial mortgage production by 22 percent, though banks’ business
backed off by a percent from one year previous.
Life insurance companies saw a 21 percent jump from the first quarter in CRE originations and were up 6 percent from the second-quarter 2017.
MBA’s data had hotel loans with an 89 percent quarter-over-quarter increase — more than any other property type. Hotel loan production has climbed by more than a fifth from the same period a year ago.
Close behind were loans to finance retail properties, leaping 87 percent from three months earlier and inching up 1 percent from a year earlier.
A 36 percent increase from the first quarter was recorded for office building loans, while volume fell 4 percent from the same quarter in 2017.
Multifamily originations ascended by a quarter and were 17 percent stronger than the same quarter a year ago.
Finally, the origination of loans secured by industrial properties was up 9 percent but a 10th lower than
the same three months last year.
