Wednesday, August 4, 2010

Commercial Loan Originations Up Year-Over-Year for Second Quarter

Some good news from the Mortgage Bankers Association (MBA) this week. According to the MBA's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, second quarter 2010 commercial/multifamily mortgage loan originations were one percent higher year-over-year, and 35 percent higher than during the previous quarter.

The one percent increase in commercial/multifamily lending activity during the second quarter was driven by loans for office and industrial properties, and there was a 148 percent increase in loans for life insurance companies. The 35 percent quarter-over-quarter increase was helped by loans for industrial and health care properties.

“Borrowing remains light as few commercial property owners are selling or refinancing their properties unless they have to,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Life insurers, CMBS conduits and others are back in the market and lending, and rates are at extremely attractive levels. However, low volumes of property sales, depressed property values, stressed cash flows and modest loan maturities are all keeping borrowing to a minimum."

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